《外国税制》程黎 范信葵 Chapter V.pptVIP

3.1 Compulsory Registration Many businesses are forced to register for VAT. From 1st April 2012 if your turnover in the previous 12 months exceeds ￡77,000, you must register for VAT. This is a legal requirement. Similarly, if you take over a business and your combined turnovers exceed this figure, you must also register. If your turnover drops below ￡75,000, you can actually de-register from VAT. 3.2 Rates of VAT It was introduced in 1973, in consequence of Britains entry to the European Economic Community, at a standard rate of 10%. In July 1974, the standard rate became 8%, and from October that year petrol was taxed at a new higher rate of 25% (reduced to 12.5% in 1976). In 1979, the higher rate was scrapped and VAT consolidated to a single rate of 15%. In 1991 this became 17.5%, though when domestic fuel and power was added to the scheme in 1994, it was charged at a new, lower rate of 8%. In September 1997 this lower rate was reduced to 5%, and was extended to cover various energy-saving materials (from 1 July 1998), Sanitary Protection (from 1 January 2001), childrens car seats (from 1 April 2001), conversion and renovation of certain residential properties (from 12 May 2001), contraceptives (from 1 July 2006) and smoking cessation products (from 1 July 2007). On 1 December 2008, VAT was reduced to 15%, as a reaction to the late-2000s recession, by Chancellor Alistair Darling. On 1 January 2010 VAT returned to 17.5%. On 4 January 2011 VAT was raised to 20% Once registered, you must understand which products and services are liable for VAT, and at what rate. Products and services will fall into one of three categories: Standard rate – 20% ;Reduced rate – 5% ;Zero rate – 0% Some products and services will also be exempt from tax. It would be impossible to provide a comprehensive guide to the products and services that fall into each category. Most items will attract VAT at the standard rate, but there are significant and manifold exceptions to this. For examp