VAT (Value Added Tax) is a tax that businesses in the UK charge on the sale of goods and services.
HM Revenue & Customs collects VAT on behalf of companies. By subtracting any VAT a company paid on purchases from the VAT charged to customers, a company pays VAT to HMRC.
A VAT-rated or VAT-exempt good or service is either a VAT-rated or VAT-exempt one. Services such as rent, private education, health care, insurance, and finance are exempt from VAT. Also, read What is the VAT Flat Rate Scheme?
In a year, a business must register for VAT if its sales exceed £67000 (as of 1st April 2008), or you can do so on a voluntary basis even before the sales threshold is reached.
Different levels of VAT are charged on goods. Most items are subject to a standard 20% VAT rate.
Reduced Rates of 5% apply to a variety of goods and services including mobility aids for the elderly, smoking cessation products (nicotine patches and gum), electricity and gas for domestic and residential use, children’s car seats, and booster seats, and booster cushions, among many others.
As a final note, the Zero Rate is applicable to many items, including but not limited to cycle helmets (CE marked), industrial boots and helmets for safety, clothing for children, baby wear, the printing of brochures, leaflets and pamphlets, aircraft repair and maintenance, and building services for persons with disabilities.
You can also check full details here https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services
Also, read How to register for VAT?
How to Calculate vat return UK
If your business is VAT-registered, you must file a VAT return with HMRC each month or quarterly. You can select a VAT scheme and rate when entering your transactions, and we will calculate the VAT due automatically. Please see below the section for your VAT scheme if you would like to learn more about how each value is calculated.
What is the GST rate in New Zealand?
GST is charged at a rate of 15%. Overview of how GST works for buyers and sellers of goods and services. If you supply goods or services you might need to register for GST.
How to calculate GST in New Zealand?
You can calculate manually using the formula $100 x 15% = $15 GST or use our tool gst calculator nz It will calculate GST in just one click.