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.
VAT is charged when a VAT-registered business sells to either another business or to a non-business customer.
When VAT-registered businesses buy goods or services they can generally reclaim the VAT they’ve paid. There are three rates of VAT, depending on the goods or services the business provides. The rates are:
• standard – 20 per cent
• reduced – 5 per cent
• zero – 0 per cent
There are also some goods and services that are:
• exempt from VAT
• outside the UK VAT system altogether
There are different VAT scheme which are suitable for different trade, they can save money and time. They are as follows
1: Annual Accounting Scheme
2: Cash Accounting Scheme
3: Flat Rate Scheme
4: VAT Schemes for Retailers
5: Marginal Scheme for second hand goods, art, antiques, collectibles
6: Tour Operators’ Marginal Scheme
At Accounts and Taxation Centre we provide a cost effective service, Which includes;
- Assistance with VAT registration
- Advice on VAT planning and administration
- Use of the most appropriate scheme
- VAT control and reconciliation
- Help with completing VAT returns
Using VT Software we can generate VAT Returns on a monthly, quarterly or annually basis. If you are on a different VAT scheme such as cash accounting, flat rate, marginal scheme, retail scheme. VT software is able to calculate and generate returns on all VAT schemes and also able to submit VAT returns online.