Output VAT
Definition
VAT a business charges its customers on taxable sales and must account for to the tax authority. The amount payable each period is output VAT less recoverable input VAT; where input exceeds output, a refund position arises.
Related Terms in International Tax
Reverse Charge VAT
A mechanism shifting responsibility for accounting for VAT from the supplier to the customer, used for cross-border services and in sectors prone to fraud such as UK construction. The customer records both the output and the input side, so there is often no net cash effect.
Making Tax Digital (MTD)
HMRCs programme requiring UK businesses to keep digital records and file returns through compatible software using a digital link rather than manual re-entry. Established for VAT, with Income Tax Self Assessment being phased in by income band and start date set by HMRC.
Self Assessment
The UK system under which individuals, including the self-employed, company directors and landlords, report income to HMRC on a tax return and pay the tax due. Filing and payment deadlines, and the payments-on-account mechanism, are set by HMRC.
BAS
The Business Activity Statement lodged with the Australian Taxation Office to report and pay GST, PAYG withholding, PAYG instalments and other obligations. Lodgement frequency, monthly, quarterly or annual, depends on turnover and registration.
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