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In business? Unsure on VAT?

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In business? Unsure on VAT?

WHAT IS VAT?.........

Value Added Tax (VAT) is levied on the sale of goods or services by UK businesses.

It applies to all goods and services that are bought and sold for consumption in the EU.

VAT is collected on behalf of HM Revenue & Customs by companies. A company pays VAT to HMRC by calculation the amount of VAT charged to customers minus any VAT they have paid on their own purchases.

All goods and services are either VAT-rated or VAT-exempt. VAT-exempt items include rent, private education, health services, postal services, finance and insurance, and gambling.

VAT is charged on goods at different levels. The current standard rate of 20% applies to most items.