Input tax is the Value Added Tax (VAT) paid by a taxable person when purchasing goods or services from a VAT-registered trader. It is used to offset the output tax to determine the final VAT payable to tax authorities.
An irrevocable election made by a landlord to charge value added tax on exempt supplies of buildings (rents). This enables the otherwise irrecoverable input VAT on costs relating to the property to be reclaimed by the landlord against the output tax charged on the rents.
Output tax refers to the value-added tax (VAT) charged on the total taxable supplies made by a VAT-registered trader. The standard rate typically varies by region, and understanding it is crucial for compliance and accurate financial reporting.
Partial exemption in VAT refers to limitations imposed by tax legislation on the input tax a taxable person can claim when they make a mix of taxable and exempt supplies.
A company within a group of companies responsible for accounting for both output and input tax for value-added tax (VAT) purposes, and ensuring the quarterly VAT return for the group is submitted. All companies in the group share joint and several liability for any VAT due.
Understanding the concept of self supply in the context of Value Added Tax (VAT) when dealing with commercial buildings used for exempt purposes.
Under the value added tax (VAT) rules, the tax point is the date on which goods are removed or made available to a customer or when services are completed. It determines the tax period for which the output tax must be accounted.
VAT is a consumption tax levied on the sale of goods and services in the UK, added at each stage of production and distribution.
