Posted 19th November 2017 by Sadaf Sheikh
Value added tax (VAT) is an indirect tax on the supply of goods and services. The charge to A does not arise only on the sale of goods and services to end users but is also charged on the “value added” to the supply during each stage of the supply chain.
Businesses can submit their VAT online.
Letting your accounting software, Sage, Xero or QuickBooks complete your Vat return is the easiest option.
UK VAT is chargeable on the following:
1. Taxable supplies made in the UK by taxable persons in the course of business.
2. Acquiring goods from goods from other EU member states
3. Import of goods into the UK from outside the EU.
4. Receipt of services from outside the UK
For VAT purposes the UK includes the Isle of Man but not the Channel Islands or Gibraltar. The VAT is a European tax and supplies made elsewhere in the EU may be liable to VAT in another member state.
All businesses are not straightforward for VAT purposes. Some businesses have their own unique rules. The below outlines the exceptions to the rule:
• Second-Hand Dealers
• Tour Operators
• Building developers
For VAT rules on the above exceptions, consult our accounts experts to guide you on the right solution for your business.