Is taxable turnover for vat calculated from just revenue income , can someone pls explain calculatio

Please can someone dumb down the calculation of taxable turnover , is it purely calculated from revenue income ?

Answers

  • payrollpropayrollpro Trusted Regular Hampshire/SurreyRegistered, Working Together with HMRC Posts: 418
    What a shame this has not been answered, sorry I did not see it a lot earlier and I am sure you have obtained the answer from other sources, but if you haven't: taxable supplies is the aggregate of all invoices for supplies and services which are not exempt. The one that trips business up is zero-rated. People assume that if there is no VAT then it isn't a taxable supply and this only applies if it exempt or "out-of-scope", but that's quite rare. One caveat to this is that even if the businesses taxable supplies exceed the threshold it may apply for exemption if all or most of its supplies and services are zero-rated. It is an example of why it is critical to understand all of the detail of VAT because the penalty for getting it wrong is pretty high.
Sign In or Register to comment.