VAT Tax on various good and services
All the firms that are registered for VAT and/ or they make supplies that are taxable by VAT, will have to pay the VAT Tax.
VAT is Value added Tax, which means that the firm pays tax on the additional value that they are providing to the supply. Most VAT is charged at the standard rate, but there are exceptions to this as well.
Depending upon the nature of your business, you would have different VAT.
There are basically three different types of VAT Tax, they are:
– Standard Rate: 20%. Most goods and services come under the standard rate.
– Reduced Rate: 5%. Some goods and services like energy saving materials, children’s car seats etc come under this rate
– Zero Rate: 0%. Most food and children clothing manufacturers do not have to pay the VAT.
There are various terms and conditions for a firm to be qualified for each of these categories.
The category in which the goods belong also determine it’s VAT rates, for eg. the goods that are categorized as luxury items have more tax rates than those that are not.
At Rayvat, we will work with you to understand your workings and determine the Tax bracket that you follow as well as the amount of tax that you would need to pay.
We would even help you with the filing. So, contact us with your requirements, and we will handle it from there.
This article does not constitute advice. This article is to be used as a general guide for our clients for their own private information Read More.