Value Added Tax (VAT) is a tax that's charged on most goods and services that VAT-registered businesses provide in the UK. It's also charged on goods and some services that are imported from countries outside the European Union ("EU"), and brought into the UK from other EU countries.
When VAT-registered businesses buy goods or services they can generally reclaim the VAT they've paid.
The main points are:
- The standard rate of VAT is – 20%;
- Threshold £77k;
- Register within 1 month of limit exceeded;
- Can elect to register earlier – reclaim VAT suffered on set up costs;
- Quarterly VAT returns;
- Can elect for alternative schemes e.g. flat rate VAT scheme; and
- International trade can be complex and advice should always be sought.
To find out more, download our "Introduction to VAT" factsheet by clicking here.
To find out more about Moore Stephens Consulting Limited contact us or call on +44 1624 662020