Academy VAT or VAT for Schools

Every item which is billed is an inclusive of tax if they want to add VAT they should have proper tax registration. Tax can only be charged on taxable supplies if the Academy is VAT registered. If an academy school doesn't have a tax number, it is considered to be not registered for tax, and you cannot be charged by tax. So, for tax registration two tests are considered to have which are known as a historic test and a future test. Registration under the historic test may not be required if the taxable turnover during the next 12 months will not exceed the DE-registration threshold. Voluntary registration is also an option if you are making taxable supplies below the registration threshold, you may apply for voluntary registration. You will then become tax registered from a mutually agreed date with HM Revenue & Customs (HMRC). This will allow you to recover input tax even though your taxable supplies may be minimal. So for all this we have to understand, what is tax?

VAT - stands for 'value added tax' it is levied on the added value that results from each exchange, it means you have to pay 20% vat most of the times - but less on essential items.

It is different from a sales tax because a sales tax is levied on the total value of the exchange. For this reason, VAT is neutral with respect to the number of passages that there are between the producer and the final consumer.

A VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax.

In reference to Academy VAT it can be rather complicated because it has a direct financial impact on schools. There are two types of Vat for Schools which are currently in use = input VAT & output VAT. First is TAX on purchases made by the Academy (goods / services coming IN) and second is tax on sales made by the Academy (goods / services going OUT). When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge, they then add this to the selling price - this is called the gross price.

Academy VAT has been specifically designed for academy schools which and is a useful guide for school business managers when dealing with finance and value added taxes (VAT). Guidance on the website is provided by highly experienced tax advisers. It is very important to have the correct guidance whilst dealing with finance issues for schools. The team helps schools through complex VAT issues enabling them to get a better understanding of the Vat for Schools.

Academy Vat website is designed to help academy schools with VAT rules and treatment on various items. e.g., the VAT on school trips or school meals etc.