| VAT self assessment; A new idea, A new perspective.
I come across this idea of VAT assessment based on European regulations related to VAT. Under new EU rules if you are selling any product or service to another company based in EU and if they are VAT registered in their country, you do not charge them VAT, instead they self assess their VAT at rate of their country in their VAT return.
And then I got one brilliant idea….what if we implement same system for transactions happening in the UK, where you don’t have to charge VAT to other business (and don’t have to pay either).
Before I talk about my brilliant idea, lets understand how VAT system works? There are many wise accountants and academics who can give tonnes of information about VAT, but I look at it this way……
Consider that you are VAT registered. 1. If you are buying any product or services and if you are charged VAT, you simply pay them and claim that VAT back from government (HMRC). 2. If you are selling any product or services, charge VAT on top of your price and pay that to HMRC.
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