Roger runs his own business as an interior decorator. He has just come into the hotel bar where Kate is working:

Kate Hello.          Roger How are you?

Roger Terrible.  The van's been broken and I' ve just got it back from the garage. Do you know just the VAT on the bill was £1 50 so you can imagine the total bill? It's never fair that this tax should fall on us business people.

Kate                       Are you registered for VAT?

Roger                    Well I' ve only just started my business ...

Explain to Roger the principles of VAT. and whether or not he does owe Customs and Excise the £1 50.