Vat/indirect Tax

In UK a business can register for VAT if its turnover is above prescribed limit (as per recent finance act).

When a business pays for taxable supplies,VAT paid by the business called Input Tax. When a business charges VAT to its customers against taxable supplies,called Output Tax. Every VAT registered UK business must submit its quarterly VAT return within one month and 7th day of following month,e.g VAT return for quarter ended March-15 must be paid by 7th of May-15

Only VAT invoice can be claimed for input taxes and no proforma invoice is acceptable for VAT input tax claim purposes. The prevailing standard VAT rate in UK is 20% .There is also 0 rated and exempt supplies where business can charge tax at 0 rate VAT and no VAT respectively.

VAT Invoice must show supplier`s VAT registration number,Tax point/Invoice date, Rate of VAT,Customer`s detail,Seller`s detail,Invoice number & Items/service detail.