Check for zero rated vat goods and services related to your business

If you do not want to pay higher vat rates by mistake or want your goods and services to remain at optimum costs then you should check for zero rated vat goods and services related to your business. There are different vat rate slabs that are applicable on various goods and services, and you should make an effort to check the classifications that are applicable to your business.

Most eu countries have shifted over to the system of vat or value added tax over the years in a bid to trade within a common market. These countries have different vat rate slabs such as standard vat rates that are between 15% and 25%. Most countries also have reduced vat rates on certain goods and services such as goods for children, fuel, etc. Some countries such as the UK also have zero vat rates on certain goods and services, and you can apply for vat reclaim on such goods and services in case vat was previously paid on them before they turned into zero rated ones. Finally, some goods and services are also vat exempt and it would be quite difficult to get vat refunds on them.

In the UK there are several zero rated vat goods and services such as goods sold during charitable fund-raising events and advertising events related to the same. Even selling donated goods for charity or constructing or selling a building for charitable purposes attracts zero vat rates. In addition, most services, equipments and buildings specifically required for disabled people attract zero vat rates. Several utilities related to water and sewerage too attracts zero rates. Leasing, hiring or selling of freight containers too fall in this category. Several repair and maintenance services related to ships, planes, helicopters and military airplanes also fall under the zero rated vat categories. Printing of brochures, pamphlets and leaflets for your business also attract zero vat rates. In addition, clothing for children along with newspapers, magazines, publications, maps, charts, and books all attract zero vat rates in the UK.

You will certainly need to understand the concept of filing for vat refunds even on zero vat rates goods and services. For example, while paper might attract a particular vat rate, books are zero rated and thus you might be able to apply for vat reclaim in case vat has been paid before a particular product changed into a zero rated one. You should certainly hire the services of a competent vat agent or accountant, especially if you deal in some of these goods or services that attract zero vat rates. You will also need to choose an appropriate vat accounting scheme depending on the vat rates normally applicable on your business. You can also visit the website of HM Revenue and Customs or hmrc vat to learn about various vat classifications so as to find out all about applicable vat rates on goods and services purchased and sold in the course of your business.

Some countries such as the UK have a list of goods and services that do attract zero percentage of vat but are still under the purview of vat. If you are a vat registered trader in the UK then you should surely check for zero rated vat goods and services related to your business so as to adhere to vat rules while also claiming vat back successfully.