Educate Careers Value Added Tax Value added tax

@Educate. Careers Value Added Tax Value added tax (or VAT) is a tax paid to the Government when buying goods or services. o… t s k n i l r o f Click icons

@Educate. Careers Question 1 What is the standard VAT rate? A 1% B 10% C 20% D 30%

@Educate. Careers Question 1 What is the standard VAT rate? C 20% Most things you buy include 20% VAT. This isn’t advertised separately in the price, but if you check your receipt it should say how much VAT you paid.

@Educate. Careers Question 2 Which item would you pay 20% VAT on? A Car B Book C Phone D All of them

@Educate. Careers Question 2 Which item would you pay 20% VAT on? D All of them Most things have 20% VAT, there are exceptions that will be looked at next.

@Educate. Careers Question 3 There is a reduced rate of VAT. What percentage is it? A 1% B 5% C 10% D 15%

@Educate. Careers Question 3 There is a reduced rate of VAT. What percentage is it? B 5% Some good and services have just 5% VAT. Next we will look at why.

@Educate. Careers Question 4 Which item has reduced rate VAT? A Children’s car seat B A home computer C A new sofa D Pre owned Car tyres

@Educate. Careers Question 4 Which item has reduced rate VAT? A Children’s car seat A range of things have just 5% VAT applied; mobility aids for the elderly, wind turbines, and many child safety products.

@Educate. Careers Question 5 There is one other type of VAT in the UK, what rate is it charged at? A 0% B 1% C 50% D 100%

@Educate. Careers Question 5 There is one other type of VAT in the UK, what rate is it charged at? A 0% There is a zero rate VAT for some things. These goods and services have no VAT added.

@Educate. Careers Question 6 Which item has zero rate VAT? A A home computer B C Lottery ticket D Alcohol Newspapers

@Educate. Careers Question 6 Which item has zero rate VAT? D Newspapers Many things that are published have 0% VAT added.

@Educate. Careers There are three types of VAT; standard, reduced and zero rate. But, some things are exempt. Exemption means 0% VAT is added, but the businesses selling exempt products and services are taxed differently to those with the zero rate VAT. Next you will be presented with a product or service and must decide which VAT category it is: Standard at 20% Reduced at 5% Zero at 0% Exempt at 0%

@Educate. Careers Question 7 Which VAT rate is paid when paying for entry to a museum? A 0% B 5% C 20% D Exempt

@Educate. Careers Question 7 Which VAT rate is paid when paying for entry to a museum? D Exempt Many things related to education or culture are exempt from paying any VAT.

@Educate. Careers Question 8 Smoking cessation products, such as nicotine patches? A 0% B 5% C 20% D Exempt

@Educate. Careers Question 8 Smoking cessation products, such as nicotine patches? B 5% A range of items that help people to live healthier have the reduced rate of 5% VAT.

@Educate. Careers Question 9 Lottery tickets? A 0% B 5% C 20% D Exempt

@Educate. Careers Question 9 Lottery tickets? D Exempt Gambling is exempt from VAT. Although many businesses that make a profit from gambling make an effort to spend some of their profits on good causes.

@Educate. Careers Question 10 Sales from charity shops? A 0% B 5% C 20% D Exempt

@Educate. Careers Question 10 Sales from charity shops? A 0% Many items bought from shops will have 20% VAT, but charity shops don’t charge any VAT.

@Educate. Careers Value Added Tax Here’s a list of some of the things that have different rates of VAT: • • • Building services for disabled people- 0% Low vision aids- 0% Water supplied to households- 0% Babywear- 0% Children’s clothes and footwear- 0% Motorcycle helmets that meet safety standards- 0% Electricity for domestic and residential use or for non-business use by a charity- 5% Solar panels- 5% Parking- Exempt Most goods and services- 20%

@Educate. Careers For more information: • https: //www. gov. uk/vat-rates • https: //www. gov. uk/guidance/rates-of-vat-on-different-goods-and-services o… t s k n i l r o f Click icons