News - Should my business be VAT registered?
Posted on April 5, 2008 in the Finance insurance category
people.
It is levied on the supply of their goods and services (output tax) and paid to HM Revenue & Customs.
However, because businesses also pay VAT on goods and services supplied to them (input tax), the amount of VAT actually paid is the excess of the output over the input tax.
VAT applies to most goods and services, but there are some available car finance insurance quote
, including financial loans, corporate estate finance finance hill in insurance irwin mcgraw principle real series
and some types of training and education.
For supplies that are not exempt, VAT is generally charged at the standard rate of 17.5%, although there is also a reduced rate of 5% and a zero rate (0%) for some items.
The 61,000 question
Businesses and individuals are required to register for VAT and to charge it to customers once their taxable turnover for the previous 12 months reaches the VAT finance insurance tourist zurich
threshold (currently 61,000).
Registration is also required if turnover is likely to reach that limit.
You should also register for VAT if you buy in goods from other European Union countries.
Even if your taxable turnover is below the threshold, registration may still be advantageous; it enables you to reclaim VAT paid to suppliers and may increase the credibility of your business.
However, VAT registration brings significant paperwork and should not be approach estate estate finance hill in insurance irwin mcgraw principle real real series value
lightly.
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