We received a question from a reader regarding how the sale of tobacco in hospitality establishments is declared. It is as follows:
My brother is self-employed and owns a café. He was on a modular basis, but in 2015 he changed to a simplified direct estimate. He has a cigarette machine in the bar, and I would like to know if that means having two activities and would have to have another section apart from 673.2 (other cafés and bars) or if that is enough.
I have another doubt in phone number database malaysia this regard, and it is that the VAT on the packets of cigarettes he buys is not deductible and it is all accounted for as the higher purchase value of the cigarettes and the value of the sales is accounted for as the total sale price, with the difference being his profit but not accounting for VAT separately, is this correct?
It is very common for hospitality businesses to have tobacco vending machines, slot machines and even other types of recreational games in the establishment. Sometimes these services are not identified as a separate activity from the main one because they are accessories, but, in reality, they are different economic activities .
Bars that have tobacco machines must register under the heading of café-bar, 673.2, and under the heading of tobacco retail trade, 646.5. If they have slot machines, they must add 969.4, "recreational and gambling machines."