Value Added Tax (VAT) is a system for taxing what people spend. It is also administered by HMRC. The National Advice Service (NAS) is the main contact point for businesses. The NAS telephone number is 0845 010 9000.
VAT is a self-assessed tax charged on:
- the supply of goods and services in the UK; and
- the import of goods and certain services into the UK.
It applies where a taxable person in business makes supplies that are taxable supplies.
There are three rates of VAT: a standard rate of 20 per cent, a reduced rate of 5 per cent and a zero rate. Most of the goods and services supplied in the UK are liable to tax at the standard rate. Among the goods and services liable at the two lower rates are: ...