Charities & VAT

By Emma Crawford

Charities and VAT    VAT Registration Charities are not exempt from VAT, as with all non-charitable organisations, if its VATable sales exceed the VAT threshold (currently £85,000), a charity must register for VAT with HMRC.   Alternatively, if its sales are below the threshold, a charity can still choose to register for VAT in order to…

EU VAT E-Commerce Package

By Natalie Ford

EU VAT E-Commerce Package The EU VAT e-commerce package will be introduced on 1 July 2021 and will impact businesses that supply:   Low-value (below €150) goods to Northern Ireland (NI) or the EU from outside of the EU or NI. This includes goods sent from Great Britain (GB): England, Scotland and Wales. Goods from…

The Construction Industry Scheme (CIS) VAT Reverse Charge

By Natalie Ford

The chancellor confirmed that the CIS VAT domestic reverse charge measure will apply to supplies of construction work from 1 October 2020. When the reverse charge applies the customer accounts for the supplier’s output VAT. This measure only applies to construction supplies made by business to business.  Key conditions: Apply the reverse charge when all…

The Flat Rate VAT Scheme

By Natalie Ford

Limited Cost Trader The limited cost trader category was introduced on 1 April 2017, and its high rate of 16.5% gives minimal credit for input tax. It has wiped out many gains enjoyed by service-based businesses that spend less than £250 a quarter on goods, or less than 2% of their gross turnover. Don’t forget…