VAT

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VAT

VAT (value added tax) is applied to almost all business transactions and to the sales of many services and goods.

When a consumer buys goods or services, the VAT added to the price is non-refundable. However, for VAT registered businesses or individuals, VAT on the transaction is still payable (known as input tax) for goods or services bought in but VAT (known as output tax) can be charged on goods or services sold out. The final amount payable to or refundable by Customs and Excise is then the difference between the two amounts (ie input tax - VAT you have paid and the output tax - VAT you have charged).

There are three rates of VAT:

1. the 17.5% (standard) rate which should always be charged unless the government specifies otherwise
2. the 5% (reduced) rate which applies to certain services and goods such as domestic fuel (a full list is available from Customs and Excise)
3. 0% (zero rate) which includes children's clothing and footwear, books and newspapers, most food and drink and public transport (a full list is available from Customs and Excise).
   
   

Click on the links for details about when to register or cancel registration for VAT or complete a Quick Enquiry Form and we will arrange for one of our expert advisers to contact you.

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