VAT aka value-added tax is levied to the goods and service's you use. In general words, it can be said as 'consuming tax'. VAT is also known as indirect tax. VAT is levied by the government to people on what they consume as service. The regulations for VAT return are followed by various complex measurements. 

What is a VAT return in the UK?

For filing VAT return you have to fill up the return online. It includes sales tax and output tax. VAT return file typically shows the different amount paid and payable charged on service and goods in the UK. In an interval of time every year, you have to file the online VAT return. This interval period is known as accounting time.

What are the current VAT rates in the UK?

The standard VAT rate in the UK is 20%. With time, the VAT rate has changed gradually. In business dealing, there are other VAT rates that you need to be aware of. Also, there are some essential daily use products like sanitary napkins, children's car seat, energy-saving measurement, these are charged on a 5% rate. Also, some items in Oxford Circus is exempted from VAT return. Such as education and vocational training, insurance, finance and credit, etc. The postage stamp is also exempted from VAT return. These are not counted in VAT turnovers. 

You must know that with changing time, the VAT rate has changed according to Governments regulations. 

How to charge VAT

Many of you don't have complete knowledge of how Government collects tax. The Government does not directly collect the VAT return. They collect it via businesses through the service and goods to the buyers for the service they are using. The Vat return comes with an invoice. In the invoice the terms included are:

  • An invoice number
  • Date of invoice issue
  • The name and the address of your business
  • A VAT registration number provided
  • Description of goods and services covered

How to submit the VAT return file?

You can admit the VAT return via official website free online service. If you find it difficult to do it by you, ask help from a professional accountant who practices in Oxford Circus. Once you file VAT return online, this is a smart way of doing it as you are digitalising the VAT return.

How daunting it is to file a VAT return in the UK?

The way of measuring VAT for and government's rules and regulation can be a bit complex. Many of you find it difficult to cope up with. For that, an official; government's VAT guide is provided.

A gist from that guidebook would be:

  • The changes in rates are variant.
  • You cannot always claim input VAT
  • There are certain VAT schemes are available that your accountant might be aware of. Such as flat rate scheme, cash accounting scheme, annual accounting scheme, retail scheme etc.

For the better gaining of knowledge, you can ask your accountant. They can guide you through the process.

When do you have to file for VAT return?

The VAT return generally issued for three months period from the date of registration. The business has to inform about the due Vat in advance for the completion of the VAT return process.

Author's Bio: 

The author Sam Cameron encourages readers to practice accounting in Oxford Circus as a VAT return filing someone who understands the system professionally.