How can I find the VAT rate for a particular supply?
You can find details of which goods and services may be zero/reduced rated or exempt in Notice 700 The VAT guide and Notice 701/39. It also tells you where you can find additional information if you are unsure about the liability of a particular supply.
The supply of any goods and services, which are subject to VAT at any rate are called taxable supplies whether you are VAT registered or not.
If the value of your taxable supplies is over a specific limit, you need to register for VAT, unless your supplies are wholly or mainly zero rated in which case you may apply for exemption from registration. The limits are shown in the supplement to Notice 700/1 Should I be registered for VAT? You may be charged a penalty if you register late. The easiest way to register for VAT is by using our
online Registration service.
You need to charge VAT on all your taxable supplies from your date of registration and keep:
a record of all standard-rated goods and services you supply or receive as part of your business
a separate record of any exempt supplies you make and
a VAT account
At preset intervals you need to fill in a VAT return with details of your sales and purchases. You can do this
online or using a paper return. If the VAT on your sales is more than the VAT on your purchases you pay us the difference. On the other hand, if the VAT on your purchases is more than the VAT on your sales you can claim the difference from us.
The flat rate scheme for small businesses simplifies VAT accounting procedures to save you time and money.
You can find further information about the records you must keep in Notice 700/21 Keeping records and accounts and the flat rate scheme in Notice 733.