VAT

What is VAT?

VAT (Value Added Tax) is a tax on consumer spending collected by VAT registered Businesses.

When is VAT Payable?

VAT is payable on transactions involving goods/services if these items are

• Made in the UK or the Isle of Man
• By a taxable person
• Not specifically exempted or zero rated

How many rates of VAT are there?

There are three rates of VAT:

• Standard Rate-17.5%
• Reduced Rate-5%
• Zero Rate-0%

What information is required on a VAT invoice?

VAT invoices must show:

• An identifying number (the invoice number)
• Your name, address and VAT registration number
• The time of supply (tax point)
• Date of issue ( if different from time of supply)
• Your customer’s name ( or trading name) and address
• Type of supply
• A description of the goods or services supplied