Something that you are likely to encounter quite frequently in your daily life is VAT and almost anything that you buy or sell in your life is likely to be involved with this tax in some shape or form. On most goods and services right across the board you are charged at a fairly generic 20% tax rate, but as with anything there are some exemptions and some items are not charged VAT at all or may receive a lower tax rate as set by the Government.
Each range of goods and services is eligible for a different type of tax and although most common goods and services are taxed at 20% you will find groups which are not eligible for any tax at all. In some situations you may also be eligible to in fact claim your VAT back if you are part of an approved scheme, one example of this is the Agricultural Flat Rate Scheme which gives the participant access to zero VAT on agricultural products such as animals or even on services.
Another example of an industry which incorporates a different level of VAT is the rental and building industry, but this is more flexible often offering a landlord the opportunity to choose what level of VAT they would like to pay. They could opt to pay VAT if they are looking to claim back costs that they have paid on renovations or repair works and this could end up knocking a fair amount off any potential expenditures in this area.
If you are involved in an industry which provides a valuable service to society such as healthcare, welfare and education then you may find that there are a number of
Another example of an industry which incorporates a different level of VAT is the rental and building industry, but this is more flexible often offering a landlord the opportunity to choose what level of VAT they would like to pay. They could opt to pay VAT if they are looking to claim back costs that they have paid on renovations or repair works and this could end up knocking a fair amount off any potential expenditures in this area.
If you are involved in an industry which provides a valuable service to society such as healthcare, welfare and education then you may find that there are a number of
Another example of an industry which incorporates a different level of VAT is the rental and building industry, but this is more flexible often offering a landlord the opportunity to choose what level of VAT they would like to pay. They could opt to pay VAT if they are looking to claim back costs that they have paid on renovations or repair works and this could end up knocking a fair amount off any potential expenditures in this area.
If you are involved in an industry which provides a valuable service to society such as healthcare, welfare and education then you may find that there are a number of VAT exemptions that you could be eligible for. Although in general most of this industry is covered by a VAT exemption it's always best to check what you are actually eligible for before you make your purchase or start your business.
In addition to the products and services being VAT exempt there are also situations where charitable donations to an organisation of this type may also be VAT exempt and when you make a donation you could be eligible to claim this back on tax.
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If you are involved in an industry which provides a valuable service to society such as healthcare, welfare and education then you may find that there are a number of VAT exemptions that you could be eligible for. Although in general most of this industry is covered by a VAT exemption it's always best to check what you are actually eligible for before you make your purchase or start your business.
In addition to the products and services being VAT exempt there are also situations where charitable donations to an organisation of this type may also be VAT exempt and when you make a donation you could be eligible to claim this back on tax.
About the Author:
Interested to learn more about VAT? Contact Moore Hill accountants and find out what they can do for you.