03 June 2021
This depends if there is a delivery or no. The VAT liability is calculated based on the VAT liability of the products. Now, this is when the goods are delivered or shipped. If there is no shipping or delivery of the goods then VAT is calculated at a standard rate and not according to the VAT liability of the products.
A value-added tax (VAT) is a tax that is added to a product's consumption. This value keeps getting added at different stages until the product is delivered to the consumer. VAT begins at production and ends at selling. The cost of products used for manufacturing the product is not included in VAT. It only includes the cost of the final product.
So these were some of the situations and occurrences on the basis of which VAT charges are decided. Furthermore, international deliveries, zero-rated and started rated items charge Value Added Tax differently.
Pearson McKinsey has been in the industry of accounting, taxation and financial planning for businesses and individuals. In addition, they are renowned for their personalised advisory services. Pearson McKinsey has clients around the globe. For any such services, do check their website and leave a query.
Get in touch with an expert tax accountant in London.