VAT for small business - Help with VAT registration and deregistration

VAT means value added tax and a charge made in the value of sales. The VAT rate, which is currently 20% is in the budget law. Companies must register for VAT if your taxable turnover exceeds the reporting threshold and must remain until their registered business volume falls below the reporting threshold.

Companies that have registered must pay VAT on all goods and services subject to VAT at the appropriate rate. They can also recover the costs of any VAT paid by the company as part of the trade company. A company that is not subject to VAT should not charge VAT to customers, and if companies are not subject to VAT that can not recover VAT on business expenses. VAT registered companies are actually tax collectors and are responsible for calculating the net amount of VAT due in each VAT return. If the company has paid more tax you've collected and the company has the right to request a refund.

All products and services are subject to taxes (VAT) in one of three different VAT rates:

Currently Standard price 20% (some items are eligible for the reduced rate of 5% and still are standard classes evaluated even if you only pay 5%, the reduced rate applies to this apply to domestic fuel and power, medical devices for women, child car seats, installing energy saving materials)

Zero-rated, which is taxed at 0% (these include most of the food (but not meals in restaurants or cafes or farewell dinner drink hot), books (no e-books), newspapers, clothing clothing and footwear small children, exported goods, most of the recipes to a patient by a registered pharmacist, most public transport services)

Exempt not subject to VAT.

Although zero rate VAT exempt income and pay are two very different rates. To calculate the turnover for registration purposes, you must add the normal rate (including reduced rate) and zero turnover rate generally not add the volume of business exempt rate.

You can register for VAT if their turnover is below the threshold billing using voluntary registration. This could be beneficial for a company that sells all or goods or services principally with zero grade, but a lot of standard-sized purchases within the company. In addition, some companies voluntarily use recording to increase business profile and let show customers that the company has a turnover exceeding thresholds, works especially well for companies whose clients are all VAT, is because by issuance of a VAT invoice, the customer can reclaim the VAT on your next statement.