Hi, I really tried to understand the concepts of the above-mentioned terms but I find it hard to absorb and imagine how they work.
Can someone simplify vat, input tax and output tax? Thank you so much!
In: 5
VAT is a tax on all goods and services made in the UK by a ‘taxable person’ in the course or furtherance of their business, unless it’s specifically exempt (mainly health and social care, education, finance and insurance).
Output tax VAT is charged on the sale of goods or services made by a business/taxable person.
Input tax VAT is the VAT a business pays on its purchases.
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