VALUE ADDED TAX OR VAT IS COMPLICATED. FROM VAT REGISTRATION, CHECKING CUSTOMER VAT NUMBER, HOW TO APPLY VAT CLACULATOR, VAT RETURNS, TO VAT EXEMPTION AND MORE. OUR VAT CONSULTANTS PROVIDE VAT INFORMATION AND CAN ASSIST YOU IN ALL VAT MATTERS

What Is VAT?

Value Added Tax (or VAT) was introduced into the UK on 1 April 1973 at a rate of 10%. The Chancellor of the Exchequer at that time said that it was a simple tax. Unfortunately time has not confirmed this, as it has become increasingly complicated.

It is a tax on consumer expenditure therefore businesses (where they are VAT registered and fully taxable) do not bear the final costs of VAT. They are able to charge VAT on the supplies that they make (output VAT) and recover VAT on purchases that they have made (input VAT).

There are currently three rates of VAT; standard rate (17.5% - which is charged on the provision of most goods and services), zero rate (0% - which is charged on food, books and children's clothing) and reduced rate charged on fuel (5%). Attributable input VAT is recoverable on these supplies by businesses.

Some goods and services may also be exempt from VAT. Examples of exempt supplies include the provision of health and welfare, finance and land. No VAT is chargeable on exempt supplies. Businesses that make exempt supplies cannot reclaim input VAT.

Where a body makes both exempt and taxable supplies, they are known as "partially exempt". There are methods that these kinds of businesses must use in order to establish the proportion of input tax incurred, which they can recover. This is often a complex exercise.

check VAT registration number for validity

The following areas briefly describe some key aspects and how we can help you:

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