VAT which is known as value added tax is paid to HMRC; VAT in fact exists in several other countries all over the world. Actually you have to pay certain amount of your income as a VAT. It is payable on both either you sold goods or only provides services. If you do business locally or you are a doctor or layer or any other professional in UK and provide services in UK or you import goods from other countries, you are eligible for VAT. There are three different kind of VAT applicable on different kind of goods and services.
The standard value of VAT that is applicable on goods or services in UK is 17.5 percents. There is reduction of 5 % on standard tax on certain goods such as fuel, power and some other good of daily use. This reduction is also available for charitable institutions and household consumption
Some good and services fell in the category of zero-rated. These good and services are taxable but the VAT rate is zero percent. You can reclaim VAT from HMRC If you deal in zero-rated goods or services.
There are some good and services which fell in category of except good which mean you cannot receive VAT on them. if you sell those goods you have to pay tax on the rew material you purchage but you can not reclain that tax from HMRC
On the other hand, the UK officials proclaimed that starting with January 2011 the normal VAT paid by any UK corporation will be raised to 20 percent. For all the companies that are workings in UK are applicable to pay VAT on all the transactions. Any company that is listed can get a form from HMRC and they have to provide all the details and also all amounts that are paid to HMRC as VAT.
If any company that is registered in UK wants tax returns HMRC is required to provide invoices for all the services or manufactured goods they sells. These invoices have a specific number also called VAT registration number. So, if any company is able to provide all the invoices for its goods and services can claim overpaid VAT from HMRC. Typically, for the large corporations, the UK Companies House allots a particular VAT number that is particularly specified to certain companies. Especially, this special number is also beneficial for companies as it adds more trustworthiness to any business.
The standard value of VAT that is applicable on goods or services in UK is 17.5 percents. There is reduction of 5 % on standard tax on certain goods such as fuel, power and some other good of daily use. This reduction is also available for charitable institutions and household consumption
Some good and services fell in the category of zero-rated. These good and services are taxable but the VAT rate is zero percent. You can reclaim VAT from HMRC If you deal in zero-rated goods or services.
There are some good and services which fell in category of except good which mean you cannot receive VAT on them. if you sell those goods you have to pay tax on the rew material you purchage but you can not reclain that tax from HMRC
On the other hand, the UK officials proclaimed that starting with January 2011 the normal VAT paid by any UK corporation will be raised to 20 percent. For all the companies that are workings in UK are applicable to pay VAT on all the transactions. Any company that is listed can get a form from HMRC and they have to provide all the details and also all amounts that are paid to HMRC as VAT.
If any company that is registered in UK wants tax returns HMRC is required to provide invoices for all the services or manufactured goods they sells. These invoices have a specific number also called VAT registration number. So, if any company is able to provide all the invoices for its goods and services can claim overpaid VAT from HMRC. Typically, for the large corporations, the UK Companies House allots a particular VAT number that is particularly specified to certain companies. Especially, this special number is also beneficial for companies as it adds more trustworthiness to any business.
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