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What does VAT mean?

Jul 26, 2022 | Article

VAT – value-added tax 

VAT stands for value-added tax and is added to all prices across the UK

My property business and VAT?

VAT may be added to your prices for products or services

That extra money is sent to HMRC

Any VAT that you have been charged on supplies for your business can be claimed back.

How much?

VAT is normally 20% for most goods and services

Some products and services in the health, energy, healing, and protection sectors are subject to a 5% VAT tax

Health, building, publishing, and kids’ clothing products and services qualify for 0%

For more information on VAT rates, you can check out the UK Gov website

Exemptions?

All products and services are not subject to VAT. Exemptions apply to insurance, antiques, arts, and education. The tax system does not cover other items, such as statutory fees. A VAT exemption or exclusion does not equate to charging 0%.

Imports and VAT

Imported goods in the UK usually require VAT payment. Whenever you pay customs, VAT will be added to the price. When filing your VAT return, you can generally claim it back.

Exports and VAT

VAT will probably need to be added to exports of goods and services to customers within the EU. You’ll have to consider your product’s and buyer’s characteristics when determining your rate.

You can help keep track of your VAT using our integrated service Xero tools at https://www.xero.com/uk/guides/vat/tools-and-guides/

How is the Lofti property management system integrated?

At Lofti we have a full API integration with XERO. This means landlords and property managers keep track of any property costs, payments and reconciliations directly through the Lofti property management system.

Integrations such as the one described above provide landlords, letting agents and property managers with the right tools and technical support to save time on the administrative tasks they have to carry out on a daily basis.