VAT is one of the most complicated taxes and at times may seem silly!
Lets take two examples:-
Milk and fruit have no VAT. So when you make a Strawberry Milkshake
there is no VAT applied.
HOWEVER, if you make a Chocolate Milkshake
then this is classed as a luxury item and VAT is applied.
Lets take the humble gingerbread man
He has not VAT applied at this stage.
But if we now dress him with Chocolate trousers…guess what.
VAT is now applied!
What qualifies and the VAT rate to charge depends on the type of goods or services.
No VAT is charged on goods or services that are:
- exempt from VAT
- outside the scope of the UK VAT system
This guide to goods and services and their VAT rates isn’t a complete list.
Our advice is to seek help from an accountant with knowledge, training, and experience – it will save you time, money and allow you to get on and do what you do best, running your business.
If you know of a local business that needs help with their VAT, whether that is full bookkeeping or just the checking service we offer, please do pass on our details, MJB Avanti (08000) 388 799