Rates of VAT on different goods and services
If you're registered for VAT and you make VAT taxable supplies you'll have to charge VAT on them. Normally you charge VAT at the standard rate, unless the goods or services you are selling, and the circumstances in which you're selling them, mean you are allowed to charge a different rate.
There are different rates of VAT, depending on the type of goods or services your business provides. At the moment there are three different rates. They are:
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standard rate - 17.5 per cent |
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reduced rate - 5 per cent |
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zero rate - 0 per cent |
There are also some goods and services that are:
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exempt - so no VAT is charged on them |
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outside the scope of the UK VAT system altogether |
Note.
The standard rate of VAT was temporarily reduced to 15 per cent on 1 December 2008 and it returned to 17.5 per cent on 1 January 2010.
Registration and De-Registration
The taxable turnover threshold, which determines whether a person must be registered for VAT, increased from £68,000 to £70,000, wef 1 April 2010.
The taxable turnover threshold which determines whether a person may apply for deregistration increased from £66,000 to £68,000.
The registration and deregistration limits for relevant acquisitions from other European Union Member States was also increased from £68,000 to £70,000.
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