What are the items exempted from VAT?
2020 LIST OF GOODS AND SERVICES EXEMPTED FROM VALUE ADDED TAX IN NIGERIA
- all medical and pharmaceutical products;
- basic food items;
- books and educational materials including educational performances and tuition from nursey to tertiary education;
- baby products;
- all exported goods and services;
What items are subject to VAT?
Most sales of goods and services in the UK are subject to VAT at the standard rate of 20%.
- catering and hot food (including hot takeaways)
- snacks such as crisps, confectionery and ice cream.
- alcoholic drinks.
- soft drinks.
- sports drinks.
Who is a VATable person?
In other words, a VATable person is one who trades in VATable goods and services for a consideration.
Is VAT chargeable on transport?
If the place of supply of freight transport or related services is the UK then the supply is standard rated, except for: the supply of transportation or related services connected with an import into or an export from the UK. … when the supply is zero-rated.
Is Bread VAT exempt?
The VAT Act contains a list of 19 food items that qualify for the zero rating. These include, amongst others, items such as fresh fruit and vegetables, brown bread, milk and eggs.
What foods are VAT free?
You can zero rate all supplies of unprocessed foodstuffs such as:
- raw meat and fish.
- vegetables and fruit.
- cereals, nuts and pulses.
- culinary herbs.
Do you pay VAT on services?
Exempt goods and services
Exempt goods or services are supplies that you cannot charge VAT on. If you buy or sell an exempt item you should still record the transaction in your general business accounts. Examples of exempt items include: insurance.
What is VAT paid on?
The standard rate of VAT in the UK is currently 20% and this is the rate charged on most purchases. However, there are other VAT rates which you need to be aware of as a business. Reduced rate VAT is charged on sanitary products, energy saving measures and children’s car seats and is charged at 5%.
How is VAT calculated?
To work out a price including the standard rate of VAT (20%), multiply the price excluding VAT by 1.2. To work out a price including the reduced rate of VAT (5%), multiply the price excluding VAT by 1.05.