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Vat

Miss DazyMiss Dazy Feels At HomeRegistered Posts: 34
what would be the main effect of beginning to sell items exempt from VAT as a business? having previously only old items that are standard rated?

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    If the exempt sales are less than 25% of the turnover, no change (other than you don't owe any VAT to HMRC on them nor collect any from customers.

    However, if they are more than that, then you get into the realms of complicated Partial Exemption caluclations which mean you can't claim back all the input VAT.
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