Exempt supplies refer to categories of goods or services that are not subject to Value Added Tax (VAT) as stipulated under the Value Added Tax Act 1994.
Irrecoverable Input VAT refers to the Value-Added Tax (VAT) paid on items acquired to produce exempt supplies and cannot be reclaimed or offset against output tax.
An irrevocable election made by a landlord to charge value added tax on exempt supplies of buildings (rents). This enables the otherwise irrecoverable input VAT on costs relating to the property to be reclaimed by the landlord against the output tax charged on the rents.
Partial exemption in VAT refers to limitations imposed by tax legislation on the input tax a taxable person can claim when they make a mix of taxable and exempt supplies.
Retailer schemes offer various methods for retailers to efficiently manage and report taxable supplies, ensuring compliance with VAT regulations.
The rate of value added tax (VAT) applied to all goods and services sold by taxable persons that are not exempt, zero-rated, or subject to a special rate. For the 2016-17 tax year, the standard rate was 20%. It is also the marginal tax rate for most taxpayers.
VAT is a consumption tax levied on the sale of goods and services in the UK, added at each stage of production and distribution.
Zero-rated goods and services are taxable for value-added tax (VAT) purposes but are currently subject to a tax rate of zero. In contrast to exempt supplies, VAT attributable to zero-rated supplies is allowable for input tax credit.
