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VALUE ADDED TAX ACT 1994
- Value added tax shall be charged, in accordance with the provisions of this Act: (a) on the supply of goods or services in the United Kingdom (including anything treated as such a supply), (b) on the acquisition in the United Kingdom from other member States of any goods, and (c) on the importation of goods from places outside the member States, and references in this Act to VAT are references to value added tax. VAT on any supply of goods or services is a liability of the person making the supply and (subject to provisions about accounting and payment) becomes due at the time of supply. VAT on any acquisition of goods from another member State is a liability of the person who acquires the goods and (subject to provisions about accounting and payment) becomes due at the time of acquisition. Each year the Government sets a figure - should it be the same as the previous year or different - which if met by your company, you need to register for VAT. Registering for VAT can help offset purchase costs in your business if your primary customers are also VAT registered. The VAT form is very easy to fill in once your formation is complete. It costs nothing to become VAT registered and unless your taxable turnover exceeds the thresholds, there is no requirement to do so. Personal end-consumers of products and services cannot recover VAT on purchases, but businesses are able to recover VAT on the materials and services that they buy to make further supplies or services directly or indirectly sold to end-users. In this way, the total tax levied at each stage in the economic chain of supply is a constant fraction of the value added by a business to its products, and most of the cost of collecting the tax is borne by business, rather than by the state.
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WHAT IS VAT? VAT AND EU:
- It is also charged on goods, and some services, imported from places outside the European Union and on goods and some services coming into the UK from the other EU countries. All goods and services that are VAT rated are called 'taxable supplies'. You must charge VAT on your taxable supplies from the date you first need to be registered. The value of these supplies is called your 'taxable turnover'. The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the Community. Thus, goods which are sold for export or services which are sold to customers abroad are normally not subject to VAT. As neither UK nor EC legislation has provided an exhaustive definition or test for determining if an activity is business, the meaning of business and economic activity has emerged from a body of case law. This has given rise to the business test, which consists of six elements or indicators that the Courts have seen as being characteristic of a business. These are not a checklist and a business may have some, but not all, of the features indicated. Instead they are a set of tools designed to help compare activities where there is some uncertainty about their nature with features of activities that are clearly business. In most cases, it will be clear that an activity is business but, where difficulties arise, Customs will apply this business test.
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WELCOME TO CODDAN CPM ONLINE COMPANIES INCORPORATION & REGISTRATION AGENT
- Welcome to Coddan online UK company formation agent website. We offer electronic British company formation and electronic filing of documents. We also offer nominee secretary and registered office facilities in addition to English, Scottish and Irish company formations. We will form your new company with your intended directors, company secretary, registered office and shareholders all in place and recorded at Companies House at the time of formation, although we can of course still use our nominees for incorporation purposes if you prefer. We complete all the minutes, statutory registers and official documents on your behalf, and ensure that all necessary forms and resolutions are correctly filed with the Registrar of Companies. Limited company formations are processed using specially approved companies house software, which does not require you to sign forms 12 and 10. The whole process is done online. Your limited company registrations will be set up as a general trading company refined by the professionals from years of experience. This should cut out some of the red tape that can be associated with company formations and administrating limited companies so that you can concentrate on trading knowing the professionals have done their job. Our full range of services include custom packs for resellers, company secretarial services, secretarial software, company restoration, domain name registration, offshore companies, company searches and credit reports, tax advice, registered office facilities, charity registration.
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