How VAT works
What VAT is charged on
VAT is charged on things like:
- goods and services (a service is anything other than supplying goods)
- hiring or loaning goods to someone
- selling business assets
- commission
- items sold to staff - for example canteen meals
- business goods used for personal reasons
- 鈥榥on-sales鈥� like bartering, part-exchange and gifts
These are known as 鈥榯axable supplies鈥�. There are different rules for charities.
VAT is not charged on goods or services that are exempt from VAT or are unaffected by VAT (鈥榦ut of scope鈥�).