VAT Description
Please find below all the articles that have been tagged as 'VAT'.
Morgan Hemp is proud to announce the launch of its ground-breaking smartphone app.
The app, allows individuals and businesses to log their expenses, keep on top of important dates in the annual tax calendar — and in light of recent changes to the VAT system — to accurately log business mileage.
The free app uses the smartphone inbuilt GPS system to allow users to generate a report at the end of each month that can be sent directly on…
Most products and services are subject to standard rate VAT at 20%, but some products are zero-rated (VAT applied at 0%), while others, e.g. rent for certain buildings, are exempt from VAT. There is a limited range of products and services that attract 5% VAT.
If you supply a package which is made up of products and services which carry different rates of VAT, you need to be sure of the split to charge the right amount of VAT to your customers. The VAT man may insist that you…
Read MoreIf your business is VAT registered and you sell goods or services into other European countries you must generally also submit an additional form to the Government called an EC Sales List (ESL also known as form VAT101). There are no payments to be made or reclaimed with the ESL, as you do on your quarterly VAT return form, but you must submit the ESL on time or HMRC will charge a penalty for late submission.
If you export goods worth more than £35,000 per year you will need…
Read MoreDo you sell digital services such as: music or software downloads, e-books or online videos? If so, do you know where your customers are, and whether they are businesses or individuals?
From 1st January 2015, when you sell digital services across international borders you will have to collect information about your customers to determine if they are businesses or not, and where they are based. Where your international sale is to a non-business customer, from 2015 you will have to charge that customer VAT of the country where he…
Read MoreDo you offer prompt payment discounts to your customers – known as PPDs?
Under UK law VAT is payable on the net amount after deducting the discount, whether or not the customer takes advantage of the discount.
Say you sell a carpet for £1,000 + VAT, and offer 3% discount if the customer pays with 10 days. VAT is charged at 20% on £970 ie £194, rather than as 20% of £1,000 which is £200. Even if the customer takes two weeks to pay and thus doesn’t qualify for the…
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