Reading. Value Added Tax (VAT) is a tax that's charged on most goods and services that VAT-registered businesses provide in the UK

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 a tax that's charged on most business transactions in the UK. Businesses add VAT to the price they charge when they provide goods and services to:

- business customers - for example a clothing manufacturer adds VAT to the prices they charge a clothes shop;

- non-business customers - members of the public or 'consumers' - for example a hairdressing salon includes VAT in the prices they charge members of the public.

If you're a VAT-registered business, in most cases you:

- charge VAT on the goods and services you provide;

- reclaim the VAT you pay when you buy goods and services for your business.

If you're not VAT-registered then you can't reclaim the VAT you pay when you purchase goods and services.

In some circumstances you might be able to get a refund of VAT you have paid, for example if you live outside the EU and are visiting the UK.

Each EU country has its own rates of VAT. In the UK there are three rates. You pay VAT on most goods and services in the UK at the standard rate. The standard rate of VAT increased to 20 per cent on 4 January 2011 but was 17.5 per cent.

In some cases, you pay a reduced rate of 5 per cent, for example for children's car seats, gas and electricity for your home.

There are some goods on which you don't pay any VAT, like:

- basic food items;

- books, newspapers and magazines;

- children's clothes;

- some goods provided in special circumstances - for example, equipment for disabled people.

Some business supplies are not subject to VAT and do not form part of VAT taxable turnover. These include insurance as well as some types of selling, leasing, but excluding garages, parking spaces, hotels and holiday accommodation.

Дата добавления: 2015-07-11