This may seem confusing to have two descriptions for essentially doing the same thing – selling goods or services without charging any VAT. However, the distinction is important. If zero rated VAT is charged, this means VAT on the expenses (“input” VAT) relating to that sale can be claimed back from the Revenue. If a […]
What’s the difference between zero rated VAT and exempt VAT? Read More »
VAT registered businesses must prepare a form called a “VAT return” and file it online with the Revenue every three months. (There are some circumstances in which VAT returns are filed more or less frequently.) The VAT on sales is called “output VAT” and the VAT paid on expenses is called “input VAT.” The amount
There is quite a lot of information that must be disclosed on a VAT invoice. The Revenue’s list is as follows which applies to invoices issued to UK customers. You might find some requirements are not applicable:- – a sequential number based on one or more series which uniquely identifies the document (this basically means
Assuming the expense is included at 20%, a quick way is to divide the total expense by six. So if you buy something for £60, £60 / 6 = £10. The VAT element is therefore £10.
How do I work out how much VAT is in an expense? Read More »
VAT registered businesses can claim relief for the VAT they pay on their business expenses that relate to their VATable sales. You can claim back the VAT on almost all business expenses relating to VATable sales providing you have a receipt that proves there is VAT on the expense, and if it is addressed to
The standard, normal rate of VAT is 20%. Some goods and services attract VAT at the lower rate of 5% (such as some conversions of properties into residential accommodation), some will have 0% VAT (such as new build residential homes) and some will be exempt from VAT altogether. To work out the VAT to charge
You only have to register with the Revenue for and charge VAT if your sales exceed the annual “registration threshold”. This is a limit set by the government and increases normally each year. It is currently £81,000. If at any point your VATable sales in the previous twelve months exceed the registration threshold, you must
“Value Added Tax,” or VAT as it is more commonly known, is a sales tax added to most goods and services sold across the European Union (“EU“). It is paid by the customer to the seller, who then forwards the tax onto the government.
