VAT on transport can raise a question for some people, especially when preparing for a VAT return. It is important to remember to always ask for a VAT receipt from your driver/ticket issuer showing the VAT number of the organization.

There are many rules regarding food and drinks and how VAT is calculated on these. The applications are often either standard rate or zero rate for VAT purposes. There are many rules regarding food and drink in retailers and grocer’s, but this article will focus on food prepared and supplied by an organization.

For businesses that are VAT registered, recording the VAT reclaimed on expenses accurately is an important part of their bookkeeping. The VAT receipts and invoices must be kept safely as evidence of the VAT paid, each clearly showing the breakdown of net and VAT amounts, and the VAT number of the supplier. Some businesses, though VAT registered, may not show these details on their documentation so without the evidence it can be difficult to know if a particular product falls under the standard rate VAT category.

When a VAT return is submitted to HMRC, there are a total of 9 boxes that need to be filled in. Your bookkeeping software will automatically fill these boxes in for you when you run a VAT report for the required period using the data you have entered from your invoices and receipts.