BIM31500 - Value Added Tax: contents

This chapter explains how the Value Added Tax (VAT) rules interact with the rules for calculating the taxable profits of a trade. The chapter begins with a brief introduction to VAT and then goes on to explain the interaction in general between the two sets of tax rules. BIM31545 to BIM31620 deal with special cases. BIM31625 describes the circumstances in which you should refer to Head Office.

The chapter only deals with VAT in the context of its interaction with trade profits and is not intended to be a comprehensive guide to VAT. Detailed VAT guidance can be found in the VAT Manuals. A general guide to VAT is contained in VAT Notice 700.

The guidance is arranged as follows:

1. BIM31501

   Introduction to VAT
2. BIM31505

   Rates
3. BIM31510

   Taxable/exempt supplies
4. BIM31515

   Turnover below registration threshold
5. BIM31520

   Input tax
6. BIM31525

   General accounts treatment
7. BIM31530

   Inclusive basis
8. BIM31535

   Trader exempt/not taxable
9. BIM31540

   Partial exemption
10. BIM31545

    Motor cars
11. BIM31550

    Private motoring
12. BIM31555

    Business entertainment
13. BIM31560

    Goods for own use
14. BIM31570

    Interval between payment & recovery
15. BIM31575

    Irrecoverable sums
16. BIM31580

    Special schemes for retailers
17. BIM31585

    Flat rate schemes
18. BIM31590

    Groups & associated companies
19. BIM31595

    Value of stock in trade
20. BIM31600

    Starting or ceasing liability
21. BIM31605

    Transfer as a going concern
22. BIM31610

    Penalties & repayment supplement
23. BIM31615

    Settlements after investigation
24. BIM31620

    Timing of deduction
25. BIM31625

    Reference to BAI Business Profits