The United Kingdom is the world’s sixth largest economy and has a reputation as a modern and respected tax regime. VAT returns can be done and paid online therefore it is a very current system in line with advancing technology.
The standard rate of VAT increased from 17.5% to 20% on the 4 January 2011 which applies to most goods and services. There are also reduced rates of 5% and zero rates which usually benefits when buying for children or home energy and food.
VAT was introduced to the UK in 1973 after the UK joined the European Economic Community. VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from within the EU. Under EU law the standard rate of VAT in any EU state cannot be lower than 15%. Each state can have up to two reduced rates of at least 5% for certain goods and services. Any temporary reduced of VAT in the public interest must be approved by the European Council first.
VAT Registration is compulsory in the UK for businesses whose taxable turnover exceeds £77,000. This is the highest VAT registration threshold in the world. Businesses that do not exceed this threshold may choose whether or not to register.
The VAT aspects of transactions and other transactions involving EU countries are becoming more and more complex. Anyone not familiar with the rules should seek specialized VAT advice and guidance.
Chesterfield have employees who are expert in the field of VAT.
Our VAT Services include;
- Registration or de-registration
- Completion and submission of VAT returns
- Preparation and submission or recapitulative statement (EC Sales Lists)
- VAT advice
- Liaising with VAT authorities with regards to enquiries
If you would like further information on VAT in the UK or any other location please follow the link below or call us on our offices Telephone Number: 44 20 7097 1385