free small business advice & information
Main Menu
Hot Links
VAT
10. Out of the Ordinary
10.1 In practice VAT accounting for the vast majority of businesses is quite straight forward. Problems and opportunities are most likely to arise when a business is doing something out of the ordinary. For example, when a business decides to:
- Buy, sell, let, sub-let or develop property.
- Agree a special discount or rebate with a customer or supplier that is documented manually or outside the normal business accounting system.
- Enter into a reciprocal arrangement with another business.
10.2 VAT works on the basis of being due unless there is a specific relief for that supply. Ensure that the VAT implications of any business arrangement have been correctly analysed. It is not always possible to change the VAT treatment after a transaction has been concluded.
10.3 There are areas where special rules apply. These include retailers; property; import and export; company cars; margin schemes applying to secondhand goods and tour operators; buying or selling a business; bad debts; free gifts and other business promotions; and supplies to employees or for personal use.
Monthly Prize Draw!
Win £375 worth of advertising for your business.
Enter our competition by either:
- Signing up to the is4profit Small Business Newsletter or
- Entering your firm's details into the Small Business Directory