VAT glossary

These are some definitions of common VAT terms that HMRC uses:

accounting period: see tax period
acquisitions: goods brought into the UK from other EU countries, sometimes known as imports
corporate body: an incorporated body such as a limited company, limited liability partnership, friendly, industrial or provident society
distance sales: where a business in one EU country sells and ships goods directly to consumers in another EU country, e.g. Internet or mail-order sales
input tax: the VAT you pay on your purchases
output tax: the VAT you charge on your sales
place of supply: the country where a supply of goods or services is said to be made for VAT purposes
self-billing: your customer issues your VAT invoice and sends a copy to you with their payment
supply: selling or otherwise providing goods or services, including barter and some free provision
supply of goods: when exclusive ownership of goods passes from one person to another
taxable person: any business entity that buys or sells goods or services and is required to be registered for VAT, this can be an individual, partnership, company, club, association or charity
taxable supplies: all goods and services you sell or otherwise supply which are liable to VAT at the standard, reduced or zero rate - whether or not you are registered for VAT
taxable turnover: the total value excluding VAT of the taxable supplies you make in the UK (excludes capital items like buildings, equipment, vehicles or exempt supplies)
tax period: the period of time covered by your VAT Return, usually quarterly
tax point: the date when VAT has to be accounted for, for goods, this is usually when you send the goods to a customer or when they take them away, for services, this is usually when the service is performed
time of supply: see tax point

The articles featured in this digital magazine are for your general information and use only and are not intended to address your particular requirements. They should not be relied upon in their entirety. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. For more information please visit www.goldminepublishing.com