Small Business: Essential VAT Guide November 2016 | 页面 4
3 Rates of VAT
There are different rates of VAT charged on different things:
Standard (20%)- this applies to most products.
Reduced (5%)- this apply to items such as fuel, power and energy-saving materials.
Zero (0%)- this apply to items such as food (but not meals in restaurants and
hot takeaways, which are charged at 20%), books and newspapers, children’s
clothes and public transport.
Exempt from VAT- this applies to goods and services such as insurance, education, training and services by doctors and dentists.
Out of scope from VAT- this applies to items such as government grants and
wages.
If your business only provides products or services that are exempt from VAT, you
cannot reclaim VAT on your purchases. If your business sells items zero-rated for
VAT (such as books), you can reclaim VAT on your purchases.
Registering for VAT online is secure, quick and easy. It automatically sets you up to
make your quarterly VAT returns online. Odiri Tax Consultants small business accounting can do the VAT registration for you and provide you with your
VAT registration number within three working days.
You can recover VAT on your pre-VAT-registration expenses if they relate to your
business within certain time limits:
For goods (provided that you still have the items), you can claim for up to four
years prior to registration.
For services, you can claim for up to six months prior to registration.
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