Value added tax (UK)

A VAT-registered business generally accounts for output tax on taxable supplies and can deduct input tax on eligible business purchases, subject to applicable conditions and restrictions. A return ordinarily reports the difference, although special schemes change how VAT is calculated or paid. Zero-rated and exempt supplies are not interchangeable: zero-rated supplies are taxable at zero, while exempt supplies have different input-tax consequences. Rates, registration thresholds, territorial rules and relief conditions must be checked for the relevant period.