A business cannot normally recover input tax on VAT exempt supplies. However, if the exemptinput tax is below the de minimis limits it can be treated as fully taxable and so, the full input taxon exempt supplies can be reclaimed. Where the exempt input tax is insignificant it can be treated as if it were … Read More

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TAXABLE SUPPLIES HMRC indicate that the VAT Act 1994 section 4(2) provides that a taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply. This means that taxable supplies are all goods or services sold which are not within the exempt items or items outside the … Read More

An individual not in business but sold one of their personal art painting for £89,000, is a taxable person? TRUE / FALSE? FALSE So, who is a taxable person? A person or entity that carries out any economic activity and deals in taxable supplies, will be called a ‘taxable person’; whether it has registered for … Read More

The boxes on the VAT return show the following information: Box 1 VAT due in this period on sales and other outputs This contains the VAT charged on all sales and receipts for the period of the VAT return less any VAT on sales returns. This represents the total output tax. This total should be … Read More