Understanding VAT for the United Kingdom

If you work with VAT in the United Kingdom, you should understand these terms and principles:

• If tax is payable, businesses must submit quarterly VAT returns to HM Customs and Excise.

• You must pay any excess output VAT over input VAT at the time of filing.

• Certain types of supplies are exempt from VAT.

  Businesses can obtain a list of these types of supplies from the local tax office.