Value Added Tax (VAT) - The Equivalent of GST
Value added tax (VAT) is charged on the supply of goods and services in the UK and on the import of goods and certain services into the UK. It applies where the supplies are taxable supplies made in the course of business by a taxable person.
A taxable supply is a supply of goods or services made in the UK, other than an exempt supply. A taxable supply is either standard rated (17.5%) or zero related. An exempt supply is not chargeable to VAT.
There are a number of schemes to account for VAT, these are: