Generally, but, supplies will be standard-rated or zero-rated. (b) due date for payment, if it occurs later. But, if the supply you’re arranging by the third party to your principal is exempt, your supply to your principal in arranging that supply may also be exempt. Remember, if you incur input tax that is related to exempt supplies as well as taxable supplies, you’re termed as partly exempt and you will probably not be able to claim all your input tax. If you make taxable supplies (standard-rated, reduced-rated or zero-rated), you have to account to HMRC for the VAT due. If that’s the way you account for VAT, this paragraph does not affect you. For example, you have a 1/700 scale model of the Titanic. For more information see Late VAT registration penalty (VAT Notice 700/41). You should normally claim input tax on the VAT Return for the period during which the supplier’s tax point occurred or, for imported goods, the date of the importation. If you use a retail scheme, you will find more about what to do in the notice for the scheme you use. If your customers are registered for VAT and the supplies are for use in their business, the VAT is their input tax. VAT paid on goods and services that you received before you were registered for VAT is not input tax. This evidence serves the same purpose as a VAT invoice from a registered UK supplier. But you can treat this VAT as input tax if the: When you or your employees are away from your normal place of work on a business trip, you can treat as input tax all the VAT incurred on hotel and similar accommodation. The basic principles of VAT are covered in: VAT is a tax on consumer expenditure. But, in cases where the amount to be paid has still to be agreed at the time the land is transferred to the purchasing authority, the tax point is the date payment is eventually received. If you’re approved to use the Cash Accounting Scheme referred to in paragraph 19.2.1 you must also have paid for the supply. A supply takes place if a registered person’s business assets are sold in satisfaction of a debt. The receipts are only valid for VAT purposes if they: You can find more about the use of authenticated receipts in VAT Notice 708: buildings and construction. This section explains the procedures that exist to settle disagreements between you and HMRC on VAT matters. It also addresses the zero rating of work to construct new buildings and the zero rating of sales of long leases in new buildings. If you’re still unhappy, find out how to complain to HMRC. Read Your Charter to find out what you can expect from HM Revenue and Customs and what we expect from you. For example, a launderette supplies a single service of washing or drying clothes, taxable at the standard rate. Check that you have entered the correct figures before you click on ‘submit’, as you cannot amend the return online after you have submitted it. Burial, cremation and commemoration of the dead (VAT Notice 701/32) explains which supplies are exempt and which are taxable. Within 21 days, the auctioneer must send: The auctioneer must also issue a VAT invoice containing the information in paragraph 16.3 but giving the name, address and VAT registration number of the supplier. As long as those making the grants or donations receive no direct benefit in return, this income is not the consideration for any supply and is outside the scope of VAT. See Business promotions (VAT Notice 700/7) or the special rules for this kind of supply. Commodities and terminal markets (VAT Notice 701/9) explains the VAT treatment of transactions in commodity and financial derivatives and trading on certain commodity markets, some of which may be exempt. You can get VAT Notes online. Apportionment is only necessary if the price you charge is the only consideration for the supplies (see paragraph 7.3). You should normally calculate this by reference to the price, excluding VAT, which a customer would have to pay for the supply if money was the only consideration. Input tax is the VAT you’re charged on your business purchases and expenses, including: This guidance explains the basic rules about input tax. Special rules apply if you’re a local authority or similar body covered by section 33 of the Value Added Tax Act 1994 and you have non-business activities. For general queries call the VAT general enquiries helpline. If you wish to correct such an error, you will need to do so in accordance with the methods explained in section 4 of How to correct VAT errors and make adjustments or claims (VAT Notice 700/45). The solicitor cannot treat the bank’s fee as a disbursement for VAT purposes. Antiques or art from historic houses (VAT Notice 701/12) explains when disposals of works of art and other objects, including manuscripts, prints and scientific objects, are liable to VAT. If your business is a corporate body (a company, charity or association), the rules do not allow you to reclaim any VAT on goods or services obtained before the body was incorporated. HMRC will also charge you further interest if you do not pay the VAT due within 30 days of the date of the Notice of Assessment. If you wish to write or email with a VAT enquiry you can use the post address or email form. In such cases, particularly if your principal wishes to remain unnamed, you may receive and issue invoices in your own name for the supplies concerned. Supplies of land made as a result of a compulsory purchase order are subject to the normal tax point rules. It’s the practice in some trades and professions for some or all of the costs incidental to a supply, such as travelling expenses, to be described as disbursements and shown or charged separately on the invoice issued to the client. Triner Scale originated the floor mounted floor scale for pallet weighing and container weighing. The staff costs are part of the value of the supply by the restaurant and VAT is due on the full amount. In addition, the supplier incurs £20 expenses which are passed on to the client, but which do not qualify for treatment as disbursements for VAT purposes. If the consideration for a supply is wholly an amount of money, the tax value is based on that amount. For more information on this and other methods of payment, see VAT Notice 700/12: how to fill in and submit your VAT Return. The supplier uses an agent who acts in their own name. For more information see section, the amount to reclaim will be the amount of VAT shown on the VAT invoice from your supplier, the invoice is a less detailed VAT invoice (see, your input tax will be the VAT fraction of the total amount charged for any standard-rated supply (see, you pay an employee a flat rate for subsistence expenses, cannot claim as input tax any VAT incurred on those expenses, the business pays the actual cost of the supplies, can claim the input tax incurred, as explained in paragraphs, the business pays a proportion of the actual costs, can treat as input tax the VAT fraction (see, your business provides canteen facilities for you or your staff, all the VAT incurred in providing these facilities as input tax, your business pays for meals for employees, you’re a sole proprietor, partner or director, as input tax the VAT on meals you take when you’re away from your normal place of work on a business trip, but you cannot recover the VAT on meals which are not taken for business purposes, usually the date when you send them to your customer or the customer takes them away. The time limit for claiming deduction of input tax is 4 years from the due date for the return on which you were first entitled to claim deduction of the input tax. If no such purchase price can be ascertained then the value is what it would cost to purchase goods similar to, and of the same age and condition as, the goods in question. You should not make any deduction for cash discounts but you should deduct all credits you received from suppliers in the tax period. But if the accommodation is used partly for business purposes (for example, if you use a room for meetings or as your office), then you can reclaim as input tax part of the VAT charged. You may sometimes be empowered by your principals to enter into contracts with a third party on their behalf. HMRC is prepared to treat such minimal use as being insignificant for VAT purposes and it will not prevent a business treating all the tax it incurs on calls as input tax. If you buy from a third party travel, hotel, holiday and certain other supplies of a kind enjoyed by travellers, and resell them as principal, or as an agent acting in its own name, there are different place of supply rules. You must continue to account for VAT in the period in which the normal tax point occurs. But you must be able to provide English translations of specific invoices within 30 days if asked to do so by a HMRC visiting officer. For Windows 10 Users : Click here for information on downloading files. Education and vocational training (VAT Notice 701/30) explains which insurance services are exempt and which are outside the scope of VAT, with or without input tax recovery. If you have any feedback about this notice email: customerexperience.indirecttaxes@hmrc.gov.uk. If your business is not established in the UK, you’ll have to register for VAT if you make any taxable supplies here. This procedure is explained in detail in VAT Notice 735: VAT domestic reverse charge on specified goods and services. The tax point for the payment of retention money is the date when you either issue a VAT invoice or receive any payment, whichever happens first. We report on our research to apply the FUSE methodology at the national scale in the U.K., using this within a Generalised Likelihood Uncertainty Estimation ("GLUE") approach to evaluate behavioural model structures and parameterisations for nearly 700 catchments, ranging in size from 100 to 104 km2. Show: products by page. If you buy goods from a cash and carry wholesaler you’ll need VAT invoices to support your claims for input tax. You might: But, provided that the invoicing for the supply is between the principal and the customer, the only supply for VAT purposes being made by you will be the provision of your services to your principal. In these special cases the period of assessment is limited to 20 years. As there’s no charge for credit there’s no exempt supply for VAT purposes. This section explains what to do when there’s a change in the rate of VAT (see paragraph 3.7). But, for all other purposes the normal tax point rules apply. To work out the normal price for both supplies: To work out what proportion the standard-rated supply forms of the total normal price: (f) Multiply (a) by (e): £200 × 0.8 = £160. For more information see Hotels and holiday accommodation (VAT Notice 709/3). Most deposits serve primarily as advance payments and will create tax points under paragraph 14.2.2(a) when you receive them. If you use the VAT MOSS online service to submit your returns and payments, you’re not eligible to use the annual accounting scheme. Whatever formula you use, the input tax is only reclaimed provisionally at the end of each tax period. To help computer systems used by the trade, when you refer to the law you should normally leave out any full stops used to indicate abbreviations. Section 29 tells you about the areas of business where some supplies may be exempt, reduced-rated or zero-rated. The tax point for goods sold under a second-hand scheme is either the date of: But if there’s a change in the tax rate or liability before the goods are removed, you can, if you wish, account for tax at the rate in force when the goods are removed, even if you have already received payment. If you’re in business, you must register for VAT when the total value of any of your taxable supplies, distance sales or relevant acquisitions goes over the current registration thresholds. But, where a business has systematically failed to obtain a valid VAT invoice HMRC will not consider exercising its discretion. The auctioneer need not be registered to issue this and should not ask the supplier for a VAT invoice. For example, these may all be non-business activities: An activity that’s carried out mainly as a hobby, such as stamp collecting, is not a business. It also covers the arrangements under which certain disposals, exempted from capital taxation, may be exempted from VAT. They must be kept in such a way that, given the invoice date and the supplier’s name, they can be easily presented to HMRC on request. This guidance explains the general rules about output tax, including the amount of tax due and tells you about some special rules for particular cases. If there’s a single surviving partner and that partner decides to continue the business as a sole proprietor, they should notify the VAT Registration Service within 30 days of the change taking place. The payment cannot be reclassified if the supply is unfulfilled, so cannot be treated as outside the scope of VAT. If you acquire or create a capital item for use in your business (see paragraph 13.2), you should look at Capital goods scheme (VAT Notice 706/2). All content is available under the Open Government Licence v3.0, except where otherwise stated, 5. You make a zero-rated supply and a standard-rated supply and you charge an inclusive price of £139. You must also hold the associated evidence to claim deduction of input tax. So the price of £144 is apportioned like this: You make a zero-rated supply and a standard-rated supply and charge an inclusive price of £200. your principal must issue a VAT invoice to you for the actual price paid by the buyer, and you may then reclaim any VAT as input tax. HMRC aims to provide information and advice that will give certainty to customers concerning the tax consequences of their transactions, their obligations, liabilities and entitlements. The different payment options are outlined in the Pay your VAT bill guide, where you’ll also find HMRC’s bank details. (b) you do not need a VAT invoice for some types of supply if your total expenditure for each taxable supply was £25 or less (including VAT). The supplies that you arrange are made by, or to, the principal you represent. Competition prizes are usually treated as gifts. It’s important that you keep yourself up to date by noting these changes. Paragraph 7.4 explains how you work out the value of these supplies. Buildings and construction (VAT Notice 708) explains when the sale or long lease of dwellings, certain residential buildings (such as care homes) and certain buildings used by charities is zero-rated. The agent may reclaim £20.00 as input tax. On receipt, your customers must adjust their input tax record accordingly. If you think you may not be able to pay your VAT on time, it’s important that you contact HMRC’s support for your business service right away. For more information see paragraph 1.4 of Insolvency (VAT Notice 700/56). To help HMRC to give you the best service, always give the full facts. The charge is tax inclusive at the standard rate of VAT. If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right. Adoption means that the customer indicates a wish to keep them. A supply takes place when a registered person’s business assets - including property - are sold in satisfaction of a debt. Generally speaking, this notice and the other VAT notices explain how HMRC interprets the VAT law. If you make supplies of goods and services set out in Domestic reverse charge procedure (VAT Notice 735) to other VAT-registered businesses, the VAT on your supplies must, in most cases, be accounted for under the reverse charge procedure. Your principal should always be able to know the price you paid in obtaining the supply. Some special rules about tax value are explained in section 8 and section 9, regarding specific transactions. Operating Guide | TS-700 Series A-2 Appendix For Scale Technicians Calibration Switch, TS-700 MS: Remove the screws and the back plate of the enclosure. There are several options if you want to find out more about how VAT works. The agent must issue VAT invoices to the principal both for the supply arranged and for the supply of agent’s services. You must keep all invoices for standard-rated, reduced-rated and zero-rated supplies that you receive for your business. You may, if you wish, write your invoices in a language other than English. This means that tax will be due at the new rate on supplies of the affected goods or services made on, or after, the date on which the change takes effect. Find out how HMRC uses the information we hold about you. Print Scale 1:700 700-001 + Actions Stash. If they do, there are procedures for handling complaints fairly and speedily. The standard tax period is 3 months. This means you’re liable to account for VAT on the supply of the goods, as well as on the commission you charge the seller and, if applicable, on the fee charged to the buyer, sometimes referred to as buyer’s premium. Trumpeter. For more information on the zero rating of work on goods for export from the UK and EU, see Place of supply of services (VAT Notice 741A). The reduced rate only applies to the supply and installation of the following items: But, the reduced rate does not apply to any repairs or maintenance of those goods once they have been installed. Movement of goods between Northern Ireland and EU, and Great Britain and Northern Ireland, 9. The simplified invoice must include: If you make retail sales, you should give your customer a VAT invoice if asked for one. Depending on the level of your trade with EU member states, you may be required to submit more detailed statistical declarations. Where the goods have been supplied to a VAT-registered business in an EU member state, you will lose your entitlement to zero rate those transactions. For more information see Who should register for VAT (VAT Notice 700/1). The amount paid includes tax. The tax point (time of supply) will be shown on your supplier’s invoice. If you want to send or receive electronic invoices, you will have to meet the conditions for electronic transmission which are listed in Electronic invoicing (VAT Notice 700/63). Protective equipment (VAT Notice 701/23) gives details of the reduced rate for children’s car seats. You will find detailed guidance on these in other, more specialised notices. HMRC will encourage you to co-operate and produce evidence, and may reduce the penalty to take account of the extent of your co-operation with the investigation. If you still cannot find the answer to your question and you need more help then call the VAT general enquiries helpline. you must make sure that those items show clearly that there’s no VAT payable and you must show a separate total for their values. HMRC will ordinarily make repayments of VAT direct to your UK bank account or building society. Clubs and associations’ VAT responsibilities (VAT Notice 701/5) explains the effect of VAT law on supplies made by clubs and associations, and the scope of the exemption for bodies that have objects that are in the public domain and are of a trade union, political, religious, patriotic, philosophical, philanthropic or civic nature. If you supply services, or new or second-hand goods, and receive other goods or services in full or part-payment, two separate supplies take place. In the same way, VAT charged to you on your business purchases is your input tax. For more information see Agricultural Flat Rate Scheme (VAT Notice 700/46). For goods relieved of Excise Duty, the rate of VAT chargeable is that applicable at the time of their removal from warehouse. If you have already issued a VAT invoice showing the old rate of tax, you must correct it by issuing a credit note. Similar arrangements to those above apply if you remove goods from an approved warehouse. For more information on when and how to do this, see VAT Notice 700/11: cancelling your registration.