Axizone Consultancy

VAT Services

Efficient VAT Accounting Services: Expert Support for Seamless Compliance and Reporting

At Axizone Consultancy, our team of qualified and experienced professionals in Milton Keynes is dedicated to providing comprehensive VAT accounting services. We combine cutting-edge accounting software, expert tax knowledge, and a dedicated client manager to ensure seamless VAT compliance and reporting throughout the year. By choosing our services, you can rest assured that you’ll meet HMRC’s Making Tax Digital rules while enjoying peace of mind.

What Is VAT (Value Added Tax)?

Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production and distribution. It’s an indirect tax ultimately borne by the end consumer.

Why Choose Axizon Consultancy for VAT Accounting?

We go beyond traditional accounting. We embrace new technology to automate and streamline business processes, allowing you to make critical decisions based on real-time financial data and reduce your tax liability.

Our VAT Accounting Services Include

Businesses and VAT Requirements

Businesses with an annual turnover exceeding £85,000, often referred to as the VAT registration threshold, are required to register for VAT. They must calculate and include VAT on their purchases and sales, subsequently remitting the collected VAT to HMRC as part of their regular quarterly return.

Taxation Guide to VAT

VAT is a consumption tax applied to most goods and services sold in the European Union (EU). The standard VAT rate in the EU is 20%, with reduced rates of 5% and 10% for specific goods and services. VAT is destination-based, meaning it’s due in the country where goods or services are consumed, regardless of their origin.

Postponed VAT Accounting (PVA):

Postponed VAT Accounting is a method of accounting for VAT on imported goods. Under PVA, businesses do not pay VAT when goods enter the UK but account for it on their next VAT return. This improves cash flow and reduces upfront VAT payments.

frequently asked questions (FAQs) about VAT Accounting

VAT Accounting refers to the process of managing and reporting Value Added Tax. Businesses in the UK with an annual turnover exceeding the VAT registration threshold (£85,000) are required to register for VAT and maintain VAT Accounting records. VAT Accounting helps track and report VAT transactions to HMRC.

In the UK, there are standard VAT rates, reduced rates, and zero rates for different goods and services. The standard rate is 20%, while reduced and zero rates apply to specific categories. Understanding which rate applies to your goods or services is crucial for accurate VAT Accounting.

VAT registration involves submitting an application to HMRC, providing necessary business details, and choosing your VAT Accounting scheme. Once registered, businesses must charge VAT on eligible sales and report it to HMRC regularly. Our VAT experts can guide you through this process.

PVA is a method of accounting for VAT on imported goods. It allows businesses to delay paying VAT on imports until their next VAT return. PVA can benefit businesses by improving cash flow and reducing upfront VAT payments. However, specific criteria must be met to use PVA effectively.

Non-compliance with VAT Accounting, such as late submissions or incorrect reporting, can lead to penalties and fines imposed by HMRC. Penalties vary based on the severity and frequency of the violations. It’s essential to maintain accurate records and adhere to VAT regulations to avoid such penalties.