These are some plain English definitions of common VAT terms that HM Revenue & Customs (HMRC) uses:
- accounting period: see tax period
- acquisitions: goods brought into the UK from other EU countries - (goods brought into the UK from outside of the EU are known as imports)
- corporate body: an incorporated body such as a limited company, limited liability partnership, friendly, industrial or provident society
- distance sales: where a business in one EU country sells and ships goods directly to consumers in another EU country, eg internet or mail-order sales
- exports: goods sent to a non-EU country
- despatches: goods sent to another EU country
- imports: goods brought into the EU from another country
- input tax: the VAT you pay on your purchases
- output tax: the VAT you charge on your sales
- place of supply: the country in which a supply of goods or services must be accounted for VAT purposes
- self-billing: your customer issues your VAT invoice and sends a copy to you with their payment
- supply: selling or otherwise providing goods or services, including barter and some free provision
- supply of goods: when exclusive ownership of goods passes from one person to another
- taxable person: any business entity that buys or sells goods or services and is required to be registered for VAT - this includes individuals, partnerships, companies, clubs, associations and charities
- taxable supplies: all goods and services sold or otherwise supplied by a taxable person which are liable to VAT at the standard, reduced or zero rate
- taxable turnover: the total value - excluding VAT - of the taxable supplies you make in the UK (excludes capital items like buildings, equipment, vehicles or exempt supplies)
- tax period: the period of time covered by your VAT Return, usually quarterly
- tax point: the date when VAT has to be accounted for - for goods, this is usually when you send the goods to a customer or when they take them away, for services, this is usually when the service is performed
- time of supply: see tax point
