Detailed guidance on the operation of VAT, VAT schemes and essential VAT information.
VAT rates, registration and deregistration limits.
Under the normal rules of VAT, a supplier has to account for output tax even if the supply has not been paid for. VAT cannot be reclaimed by issuing a credit note for the unpaid amount.
Where a VAT registered person makes supplies of goods or services to another VAT registered person, subject to the standard or reduced rate.
Although the VAT rules normally prevent you reclaiming VAT on supplies that are not made direct to you, there are certain circumstances when the rules are relaxed.
Fuel scale charges for VAT.
This subject has been causing confusion ever since VAT was introduced in the UK. There are a number of issues to consider.
Deregistration from VAT is usually a fairly straightforward process. However, there are some important aspects to bear in mind which, if misunderstood, could prove costly.
Cash accounting enables you to account for VAT on the basis of payments received and made instead of on tax invoices issued and received.
This scheme is designed to reduce the cost of complying with VAT obligations by simplifying the way small businesses calculate their VAT.
Under annual accounting, you make agreed payments on account and need complete only one VAT return per year. The purpose of the scheme is to aid cash flow and budgeting.
If you need to check you are being given a valid VAT number you can call HMRC's national advice service on 0845 010 9000 from 8am to 8pm Monday to Friday.
One of life's certainties is that if you are a VAT registered business, sooner or later you will have a check by an HMRC officer, either at your business premises or remotely.
The complicated penalty system for VAT errors has been simplified, but it is not all good news.
VAT grouping occurs where two or more corporate bodies, usually companies or limited liability partnerships are treated as a single taxable 'person' for VAT purposes. A VAT group is treated in the same way as a single company registered for VAT on its own.
MOSS provisions relate to the VAT place of supply of services rules. These are the supplies of e-services, broadcasting and telecommunications (BTE).