An ad valorem tax is calculated as a percentage of the assessed value of an item, such as property, goods, or services. Common examples include property taxes and value-added taxes (VAT).
An extensive look into what constitutes a business for Value-Added Tax purposes and how it relates to the concept of 'economic activity' as defined in EU VAT Directive.
Cash accounting is an accounting method where transactions are recorded only when cash is received or paid. This system differs significantly from accrual accounting, which records transactions when they are earned or incurred. Cash accounting provides a simplified approach to managing VAT liabilities for eligible businesses.
Indirect taxes encompass a range of levies imposed on goods and services rather than income or profits, ultimately paid by consumers through higher prices.
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.
Output tax refers to the value-added tax (VAT) charged on the total taxable supplies made by a VAT-registered trader. The standard rate typically varies by region, and understanding it is crucial for compliance and accurate financial reporting.
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.
Understanding the concept of self supply in the context of Value Added Tax (VAT) when dealing with commercial buildings used for exempt purposes.
A detailed value added tax (VAT) invoice provided by a taxable person to another taxable person when a taxable supply exceeds £100, containing essential transaction and tax information.
Penalties imposed by tax authorities for failing to meet statutory tax requirements, differing for income tax, corporation tax, and value-added tax (VAT).
A taxable person includes individuals, partnerships, limited companies, clubs, associations, or charities as defined by value-added tax (VAT) legislation. These entities are responsible for charging VAT on taxable supplies made in the course of conducting their business.
Registration for value-added tax (VAT) by a taxable person whose taxable turnover does not exceed the registration threshold. This option allows businesses to benefit from claiming input tax credits even if their revenue—taxable turnover—does not mandate compulsory VAT registration.
