VAT Returns

VAT (Value Added Tax) is a tax added to most products and services sold by VAT -registered businesses. Businesses have to register for VAT if their VAT-taxable turnover is more than £85,000. They can also choose to register if their turnover is less than £85,000.

In the UK, the value-added tax (VAT) is replaced by  Purchase Tax, and is the third-largest source of government revenue, after income tax and National Insurance. It is administered and collected by HM Revenue and Customs, primarily through the Value Added Tax Act 1994.

In the UK, the standard rate of VAT (with exceptions for certain goods) has been 20% since 2011.

Three categories of supplies can be made by a VAT vendor: standard-rated, zero-rated, and exempt supplies.

Standard–rated supplies

Standard-rated supplies are supplies of goods and services on which output VAT is levied at a rate of 14%. The input VAT incurred on purchases of goods and services to generate standard-rated supplies can be deducted from output VAT payable to SARS.

Zero-rated supplies

Zero-rated supplies are supplies of goods and services on which output VAT is levied at a rate of 0%. The input VAT incurred on the purchase of goods and services to generate zero-rated supplies can be claimed against output VAT payable to SARS.

Exempt supplies

Exempt supplies are not subject to VAT. No output VAT, either at 14% or at 0%, is levied on exempt supplies. Input VAT incurred on expenses to make exempt supplies cannot be claimed against output VAT due to SARS.

Deadlines for submitting VAT returns

The deadline for submitting your return is 1 month and 7 days after the end of the VAT period, whether you pay your VAT monthly or quarterly.

Any UK VAT due must be paid at the same time.

KAELVEN gives utmost  support of qualified accountants when it comes to managing clients VAT and returns submissions.