VAT stands for Value Added Tax – a popular indirect tax upon which a big part of the economy of the European Union member states rests. As a result of its stronger presence on the European Market, as of February 1, 2008, our company will be registered for VAT in the United Kingdom where the VAT rate is 20.0%.
To bring here clarity upon the VAT classification groups, clients will be referred to as Businesses or Individuals, to differentiate the following cases:
- UK VAT at 20.0% is applicable to: all Businesses (no VAT/VAT registered) and Individuals from the United Kingdom; all Individuals from the European Union,
- Clients where VAT is applicable, but WILL NOT affect the service pricing (i.e. equals to NIL): Businesses from the European Union,
- Clients outside the scope of VAT: non EU clients (Businesses and Individuals).