Standard rate is the rate of VAT for most goods
Supply is the sale of goods or services including
Supply of goods is when exclusive ownership of
goods passes from one person to another.
Supply of services is when someone does something
for a consideration – other than supplying goods.
Tax liability – if supplies are neither zero-rated nor
exempt, they must be liable to VAT at the standard
or reduced rate.
Taxable supplies – this is a legal term that many
people find confusing. In most cases ‘supply’ simply
means the sale of goods or services including barter.
The law defines ‘taxable supplies’ as any supply
made in the UK that isn’t exempt from VAT. That is,
any supply, which isn’t exempt, is a taxable supply,
whether the supplier is VAT registered or not.
Taxable supplies include those that are zero-rated.
A person isn’t required to account for VAT on taxable
supplies that are made at a time when they’re not
required to be VAT registered and are not
VAT registered voluntarily.
Taxable turnover for VAT is the total value of
your supplies that are taxed at either the standard,
reduced or zero rate. (The supply of goods and
services that are exempt from VAT isn’t part of
your taxable turnover.)
For VAT registration purposes, you need to look at
the turnover in the last 12 months or less and/or
the next 30 days alone.
See form VAT1, questions 14, 15 and 20.
Transfer of a going concern – if you’ve taken
over a business as a going concern from someone
who was, or was required to be, VAT registered,
the law deems you to have carried on the business
being transferred prior to the transfer for the
purposes of establishing when you should
VAT register. The law also requires the person
transferring the business to give you the records
relating to the business being transferred, unless our
permission is given that they can keep them; if this
happens you should ask for copies of the relevant
records, which you must keep for inspection.
Unincorporated body is an organisation of people
or bodies whose members have a common purpose,
which has an existence independent of its members.
For example, clubs, associations, and so on.
See form VAT1, question 3.
Value Added Tax (VAT) is a tax on consumer
expenditure. Registered businesses charge VAT
when they supply their goods and services in the UK.
(VAT is also charged on goods, and some services
that are imported from places outside the
European Union (EU) and on goods coming into the
UK from another EU member state.)
VAT group – a VAT group allows 2 or more corporate
bodies to be treated as a single VAT entity. Within the
group, there will be a Representative Member who is
responsible for accounting for the VAT of the whole
group. See VAT Notice 700/2 Group and divisional
registration for more details.
Zero-rated supplies – applies to supplies such as
food, books, newspapers and young children’s
clothing. This list isn’t exhaustive and further
information regarding zero rates can be found in the
library section of www.gov.uk or by phoning our
VAT Helpline on 0300 200 3700.
Applying to register for VATVAT1(Notes)