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VAT on purchases
VAT on purchases

Which VAT rate to apply to a purchase

Steven Anderson avatar
Written by Steven Anderson
Updated over a week ago

Value Added Tax (VAT) โ€“ is an indirect tax charged on most services and goods in the UK. When purchasing something, the total price you pay will be inclusive of VAT. It can often be confusing what VAT rate is applicable to that transaction.

The best practice to follow is to match what is on the invoice or receipt you have received from your supplier.

Some retailers are not in the practice of issuing VAT receipts for all transactions, but these can be requested if required. If you do not have a VAT receipt, then you should not reclaim VAT for that transactions.

The VAT categories that are available in Ember are as below:

  • Standard Rate

  • Reduced Rate

  • No VAT

  • Zero Rate

  • Exempt

  • Reverse Charge

Video Tutorial

We've also prepared a quick video tutorial on what the best practice is when it comes to applying VAT rates on purchases.

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