Basic Principles of VAT
13 September 2012
Students at the Foundation stage need a basic understanding of VAT and its application in the accounting units 1, 2 and 3. See the basic principles explored
Value Added Tax is a form of indirect taxation common throughout the European Union. In general VAT is a tax on the consumer and not on business. Although a registered business must charge VAT to their customers, they may also reclaim (with a few exceptions) the VAT they incur and pay to their suppliers. The Customs and Excise administer VAT in the UK and dictate to...