Consumption/VAT/Sales Tax in the U.K.
- Nature of the Tax
- Value Added Tax (VAT)
- Standard Rate
- Reduced Tax Rate
- United Kingdoms apply a reduced VAT rate of 5% on certain categories of goods and services, including children’s car seats or social housing. Water supplies, pharmaceutical products, medical equipment for disabled persons, books, newspapers, social services… are exempted of VAT.
- Exclusion From Taxation
- Even if you only supply goods that are zero-rated - for example books, newspapers, young children’s clothing and shoes or food (although not food sold in cafes, bars etc) you still have to tell
HM Revenue & Customs first and apply to be ’exempt from registration’. Check its
website to see exemptions and lists of goods and services charged at 5% or zero.
There are also some specific zero-rated reliefs and exemptions.
- Method of Calculation, Declaration and Settlement
- The VAT return details how much is payable and how you have calculated it. (See how to complete a VAT return.) Your completed VAT return and payment of whatever tax is due is usually one month after the end of your tax period. You can of course submit the VAT return online and arrange for an electronic payment.
- Other Consumption Taxes
- All informations are available on the website HM revenue and customs.
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