Value Added Tax (VAT) is a consumption tax collected by the national government of the UK and is the third largest source of government revenue after income tax and National Insurance (NI). The VAT is administered and levied by HM Revenue and Customs and is followed through the Value Added Tax Act 1994.
The infographic “VAT Rates: Things to Know” gives you a complete overview of types of VAT rates, VAT rate conditions, VAT rates for goods & services and also gives you a description of VAT flat rate scheme, to help you out to be fully-equipped with the required knowledge when you claim your VAT next time.
There are three types of VAT rates available:
- Zero Rate: It means that even though the goods are VAT-taxable, the rate of VAT you could charge your customers, will remain zero.
- Standard Rate: Most of the goods & services are Standard Rate VAT chargeable, unless they’re classed as reduced or zero-rated.
- Reduced Rate: Charging this rate depends upon the item being provided and also the circumstances of the sale.
You can also reach their dedicated customer service team on VAT Contact Number to get detailed explanation on these VAT rates.