UK VAT
The standard VAT rate in the UK is 20% from 4.1.2011.There are also reduced rates of 5% and zero.
The 5% rate relates to domestic fuel etc.
The zero rate relates to food, books and newspapers ,public transport etc.
Financial services including banking and insurance are tax exempt.
Input VAT can be credited against output VAT of zero rated services, but not against tax exempt services.
The threshold for VAT registration is an annual turnover exceeding GBP 83,000.
VAT returns are usually filed each quarter.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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