I have some sympathy i don'rt think Notice 701/19 is the clearest in all (Or any?) respects - if in doubt I would recommend clarifying with hmrc in writing.
https://www.gov.uk/government/publicati ... -and-power
Ok in notice 701/19 we have
2 VAT liability of fuel and power - overview
The reduced rate of VAT applies to supplies of fuel and power for qualifying use (see Section 3).
fuel and power where the amount supplied does not exceed the small quantities, called the de minimis limits (see sections 3-7 for the limits on each type of fuel)
Ok onto section 3
3.1 What is ‘qualifying use’?
Qualifying use means:
domestic use (see paragraph 3.2), or
charity non-business use (see paragraph 3.3).
If you apply the reduced rate to supplies of fuel and power incorrectly and cannot satisfy us that you have taken reasonable steps on these points, you may have to pay any VAT that you have undercharged.
Ok onto section 3.2
3.2.2 Supplies deemed to be for domestic use
Supplies of certain small quantities of fuel and power - known as de minimis - are always treated as being made for domestic use, even when the supply is to a business customer. These limits are explained in Sections 4 (gases), 5 (electricity), 6 (oils), and 7 (solid fuels). Supplies within the limits should be taxed at the reduced rate. You do not need a certificate to apply the reduced rate to such supplies (see paragraph 3.5).
ok onto section 7
7.1.2 Wood, peat and charcoal
A supply of wood, peat or charcoal that you hold out for sale solely as fuel qualifies for the reduced rate provided that your customer does not intend to resell it. This applies regardless of the amount you supply.
so if i am reading the booklet correctly i would say it looks like the reduced rating will be applicable providing the customer is not intending to resell what you sell them, as a restaurant that seems like a reasonable assumption - could it be that the vat officer is interested more in the trade of the customer of your client that of the client?
Warning this booklet has too many ifs and buts for me to have confidence what i have posted is factually correct
- would appreciate anyone elses thoughts on how the logic of 701/19 works