VAT Advice & Information

VAT (value added tax) is a tax paid on goods and services within the UK. The total value of these goods and services is referred to as taxable turnover. VAT is paid by companies on top of the cost of the products or services it buys from another supplier. This is referred to as being input tax.

Output tax is then the VAT that a company adds to the cost of the products or services it sells which is passed onto its customers.

VAT Registered
A company must become VAT registered if their taxable turnover reaches a particular figure set by the government each year. Another reason to become VAT registered is if the company trades or is planning to trade in EU countries.

A company has to fill out a VAT return four times a year. Her Majesty's Customs and Excise then receive a payment of the difference between the output and input tax. Companies can claim money back if the output tax is lower than the input tax.

Presently VAT (input and output) rates are:

17.5% VAT on the price which is the standard rate that applies to most goods and services

5% VAT, known as the reduced rate and applies to things like fuel used by charites

0% VAT, zero rate on things like loans and insurance

If you require value added tax advice or further VAT details please visit the VAT section of HM Revenue and Customs website (formerly the Inland Revenue).

Also if you are unsure of your value added tax situation we would recommend that you seek independent VAT advice.

You can also use the links below for further value added tax information and VAT advice

	Find Vat at Ask.com Whatever you're looking for, find it with Ask.com.
	Customs Excise Vat Info Get info on customs excise vat from 12 engines in 1.
	Find Customs Excise Vat A leading UK online directory.