Category: VAT
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How Does VAT Work in Accounting: A Clear Explanation
Value Added Tax (VAT) is a consumption tax that is added to the cost of goods and services at every stage of production and distribution. The tax is levied on the value added to the product or service at each stage of production and distribution, and ultimately passed on to the end consumer. VAT is…
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UK Mileage Allowance and VAT Scale Charge
Businesses in the UK can claim fuel or usage as an expense when using a private vehicle for business. There are three choices: 1. Record every business trip and reclaim the mileage allowance. You can also claim back a small amount of VAT from the business mileage. Make sure you have receipts (although HMRC accept…
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Invoicing and VAT in the UK
In the UK and most of the EU there are rules on what must appear on a sales invoice if you are registered for VAT. Obviously those rules vary from one country to another, and you will need to check with your local inland revenue service, but there are some general rules that you should…
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UK VAT Early Settlement Discount or PPD New Rules
This article on UK VAT last checked and updated November 2016 by Quentin Pain If you offer a discount for early payment of your invoices, then the VAT is also discounted at the same rate. This is a new rule that came into effect from 1st April 2015 onwards. Full details are available on HMRC’s…
