Value added tax (VAT) is an indirect tax that is charged on the supply of goods and services in the UK and on the import of goods into the UK from outside the European Union.
There are three rates of VAT, depending on the goods or services the business provides. The rates are:
- Standard rate at 20%
- Reduced rate at 5%
- Zero rate
There are also some goods and services that are:
- Exempt from VAT
- Outside the scope of the UK VAT system altogether
VAT applies to taxable supplies made in the course of business by a taxable person, be they individuals, partnerships or body corporates. When VAT-registered businesses buy goods or services they can generally reclaim the VAT they’ve paid. There are special rules for the flat-rate scheme for VAT purposes for smaller qualifying entities.
Please contact us and ask for additional information on any of the following topics:
- An introduction to VAT
- The Sage Accountant Partner Programme
- VAT flat-rate scheme
- VAT cash accounting scheme
- Fuel scale charge
- Group VAT registration