Taxes in Europe Database v2
Value Added Tax Act 1994, as amended by subsequent finance acts.
VAT Registration Threshold with effect from 01 April 2015.
The UK also applies a Flat Rate Scheme for small businesses under Article 281. The scheme is limited to businesses with a VAT exclusive turnover of up to £150,000.
Only if interest in or over immoveable property is over 21 years except Scotland which is 20 years.
Basis of assessment:
(Without deduction of tax paid at earlier stages).
Land and property transactions (including rents but excluding the sale of new commercial and industrial buildings and civil engineering works; hotel, holiday and similar accommodation; parking and mooring facilities, and some other minor categories); insurance; postal services; betting and gaming (other than by means of gaming machines); sports; cultural services; disposal of certain works of art; financial transactions; education; health and welfare services; burial and cremation; membership services of trade unions, professional and other public interest bodies; one off fund raising events held by charities and other eligible bodies; and investment gold.
Reduced rate of 5 % applies to: domestic and charity fuel and power (by derogation under Article 113); the installation of energy saving materials in all homes and certain grant-funded installation of heating equipment; women's sanitary protection; children's car seats; certain residential conversions, renovation and alterations; certain supplies of welfare advice and contraceptive products.
The Isle of Man applies all the reduced rates provided for by the UK, but also applies reduced rates for: hotels and similar accommodation; and repairs and refurbishment to domestic properties.
NB The ticks in the list above against ‘hotel accommodation’, and ‘repairs to private dwellings’, are in respect of the Isle of Man ONLY.
Applies to work done on items that are subject to the zero-rate.
This is restricted to wood. The UK also applies a zero rate to roots and bulbs.
The UK also applies a zero rate of VAT, inter alia, to most food (except catering and hot take-away food); young children's clothing and footwear; printed matter, including books and newspapers; the construction of new dwellings and certain communal residential and charity buildings and the approved alteration of the same categories of existing buildings which are protected buildings; water and sewerage services supplied to non-industrial customers; passenger transport (other than taxis); residential caravans and houseboats; certain supplies of gold; banknotes; certain international services; certain drugs and medicines; certain aids for the disabled; exports; commercial ship and aircraft stores; sale of donated goods by certain charities and charitable donations of certain medical and scientific equipment.
Taxable persons VAT liability is calculated and reported to the tax authority by submission of a VAT return. The deadline for payment of the VAT liability is usually the same as the deadline for the return, and is normally one calendar month and seven days after the end of the period covered by the return.
At the end of each tax period (usually three months), the taxable person must make a return of VAT due to a central VAT control unit. Taxable persons who expect their input tax regularly to exceed their output tax, for example because most of their outputs are zero‑rated, may request to make returns monthly and so obtain earlier repayments. Taxable persons with turnover up to GBP 1.35 million may choose to make annual returns paying regular instalments throughout the year and a balancing amount with a return at the year end.