VAT rate guide

If you’re VAT registered, to ensure you report the correct values to HMRC on your VAT Return, you need to choose the VAT rate when you record your sales and purchases. If you deal with foreign sales and purchase, there are times when you also have to include the reverse charge, or notional VAT on your return.

To help you understand how the different VAT rates affect the VAT Return for sales, purchases and foreign transactions, we’ve put together this guide. To go through the guide, simply click the relevant answers.

The information in this guide takes you through the basics of VAT and provides general advice rather than specific guidance. We always do our best to make sure the information is correct, but as it’s general guidance, we can’t make any guarantees that it will suit your particular needs. If you require specific help on your individual circumstances, you should consider taking professional advice. To ensure you use the correct VAT rate in Accounting, you should always check which boxes you need values to appear in with HMRC.


Is the transaction a sale or a purchase?


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