VAT

VAT this is a tax that is charged on most goods and services that VAT-registered businesses provide in the UK. There are two categories of businesses when it comes to VAT, and that is; VAT-registered businesses and non-VAT registered businesses. In terms of how this is charged, this is charged when a VAT-registered business sells to either another business or to a non-business customer. Business customers include Manufacturers and non-business customers include members of the public or ‘consumers’.

 

With VAT registered businesses, in most cases, they may charge on the goods and services that they provide and can reclaim the VAT that they have paid on the goods and services that they have purchased for their businesses. However, non-registered VAT businesses cannot reclaim any of the VAT that they have paid on goods and services for their business.

 

http://www.hmrc.gov.uk/vat/index.htm