What is VAT
Value Added Tax (VAT) is a tax businesses charge when they supply their goods and services in the United Kingdom (UK) or Isle or Man (IOM). It also charged on goods and some services that are imported from places outside the European Community and on goods and services coming into the UK from another EC Member State.
Rates of VAT
 Standard Rate 17.5%
Applies to taxable supplies of most goods and services in UK and IOM.
Reduced Rate 5%
Applies to fuel and power used in the home and by charities. Also on women s sanitary products.
Zero Rate 0%
Applies to certain goods and services on which you do not need to charge VAT
When must register my business for VAT
You must register your business for VAT when the value of your taxable supplies, distance sales, acquisitions go over the limits.
For further information and help with VAT please contact Kliss Limited.
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