The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the general principles of VAT.
VAT is an indirect tax which is collected on consumer spending. It is collected on:
taxable supplies of goods and services
imports of goods
acquisitions of goods in Northern Ireland from EU member states
supplies of goods and services liable to the reverse charge (domestic and cross border supplies)
VATA 1994, s 1; De Voil Indirect Tax Service V3.101, V3.301; Notice 700 (The VAT Guide), para 3.2
These principles are explained in more detail below.
A taxable supply is:
a supply of goods and / or services that is liable to VAT at the standard rate, reduced rate or zero-rate of VAT (see below)
by a taxable person
made in the UK or Isle of Man
in the course or furtherance of a business
VATA 1994, para 4; Notice 700 (The VAT Guide), paras 4.4, 4.5
See the Supply and consideration ― goods or services? guidance note for more information on what constitutes a supply of goods or services.
The following supplies are outside the scope of UK VAT:
supplies made by a person who is not a taxable person
supplies where the place of supply is outside of the UK and the Isle of Man
supplies that are not made in the course or furtherance of a business
These principles are discussed further below.
A taxable person is an individual, partnership, company or other organisation who is either registered for VAT or required to be registered for VAT. A person is required to be registered for VAT if the value of the taxable supplies made by the business have exceeded the VAT registration threshold. See the Overview ― registering for VAT guidance note for more information.
Businesses that are established in the UK that are making taxable supplies below the UK VAT registration threshold can voluntarily register for UK VAT
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