VAT and GST Returns and Reporting
Expert-defined terms from the Executive Certificate in Value-Added Tax (VAT) and Goods and Services Tax (GST) course at Stanmore School of Business. Free to read, free to share, paired with a globally recognised certification pathway.
Accrual Method – A method of accounting where income and expenses are rec… #
This is the method used for VAT and GST reporting.
Apportionment – The process of dividing an input tax credit between taxab… #
Apportionment – The process of dividing an input tax credit between taxable and exempt supplies in proportion to the amount of each type of supply made.
Assessment – The process by which a tax authority determines the amount o… #
Assessment – The process by which a tax authority determines the amount of VAT or GST that a business owes.
Bad Debt Relief – A relief that allows a business to reclaim VAT or GST t… #
Bad Debt Relief – A relief that allows a business to reclaim VAT or GST that it has paid on a sales invoice that has not been paid by the customer due to bankruptcy or insolvency.
Capital Goods Scheme – A scheme that allows businesses to claim input tax… #
Capital Goods Scheme – A scheme that allows businesses to claim input tax credits on the purchase of capital goods, such as buildings and machinery, over a number of years.
Cash Accounting Scheme – A scheme that allows small businesses to account… #
Cash Accounting Scheme – A scheme that allows small businesses to account for VAT on a cash basis, rather than an accrual basis.
Composition Scheme – A scheme that allows small businesses to pay a fixed… #
Composition Scheme – A scheme that allows small businesses to pay a fixed amount of VAT or GST, rather than calculating the tax based on their actual sales.
Consideration – The payment or other consideration received by a supplier… #
Consideration – The payment or other consideration received by a supplier for a supply of goods or services.
Deemed Supply – A supply that is treated as taking place for VAT or GST p… #
Deemed Supply – A supply that is treated as taking place for VAT or GST purposes, even though no actual supply has taken place.
Disbursements – Costs that a business incurs on behalf of its customers,… #
Disbursements – Costs that a business incurs on behalf of its customers, such as shipping or postage costs.
Exempt Supplies – Supplies that are not subject to VAT or GST, such as fi… #
Exempt Supplies – Supplies that are not subject to VAT or GST, such as financial services and certain types of education.
Flat Rate Scheme – A scheme that allows businesses to pay a fixed percent… #
Flat Rate Scheme – A scheme that allows businesses to pay a fixed percentage of their VAT or GST-inclusive turnover, rather than calculating the tax based on their actual costs.
Fraudulent Evasion – The deliberate non #
payment of VAT or GST by a business, which is a criminal offence.
Input Tax – The VAT or GST that a business pays on its purchases #
Input Tax – The VAT or GST that a business pays on its purchases.
Input Tax Credit – The amount that a business can claim back from the tax… #
Input Tax Credit – The amount that a business can claim back from the tax authority for the VAT or GST that it has paid on its purchases.
Margin Scheme – A scheme that allows businesses to account for VAT or GST… #
Margin Scheme – A scheme that allows businesses to account for VAT or GST on the margin between the purchase price and the selling price of second-hand goods, rather than on the full selling price.
Output Tax – The VAT or GST that a business charges on its sales #
Output Tax – The VAT or GST that a business charges on its sales.
Partial Exemption – The situation where a business makes both taxable and… #
Partial Exemption – The situation where a business makes both taxable and exempt supplies and is therefore only partially entitled to claim input tax credits.
Reverse Charge – A mechanism where the customer rather than the supplier… #
Reverse Charge – A mechanism where the customer rather than the supplier accounts for VAT or GST on a supply.
Registered Person – A person or business that is registered for VAT or GS… #
Registered Person – A person or business that is registered for VAT or GST.
Retail Schemes – Schemes that allow businesses to account for VAT or GST… #
Retail Schemes – Schemes that allow businesses to account for VAT or GST on a simplified basis when making retail sales.
Taxable Supplies – Supplies that are subject to VAT or GST, such as the s… #
Taxable Supplies – Supplies that are subject to VAT or GST, such as the sale of goods or services.
Taxable Turnover – The total value of taxable supplies made by a business… #
Taxable Turnover – The total value of taxable supplies made by a business, excluding any exempt supplies.
Threshold – The amount of taxable turnover that a business must exceed be… #
Threshold – The amount of taxable turnover that a business must exceed before it is required to register for VAT or GST.
Zero #
Rated Supplies – Supplies that are subject to VAT or GST at a rate of 0%, such as exports and certain types of food.
VAT – Value #
Added Tax, a consumption tax that is levied on the value added to goods and services at each stage of production and distribution.
VAT Certificate – A certificate issued by the tax authority to a register… #
VAT Certificate – A certificate issued by the tax authority to a registered person, which shows the person's VAT registration number and other details.
VAT Code – A code used to identify different types of transactions for VA… #
VAT Code – A code used to identify different types of transactions for VAT purposes.
VAT Control Report – A report that shows the VAT due or repayable for a V… #
VAT Control Report – A report that shows the VAT due or repayable for a VAT period, and the input tax and output tax for the period.
VAT Due Date – The date by which a VAT #
registered person must submit their VAT return and pay any VAT due to the tax authority.
VAT Fraud – The illegal evasion of VAT by businesses or individuals, whic… #
VAT Fraud – The illegal evasion of VAT by businesses or individuals, which can take many forms, such as missing trader fraud and carousel fraud.
VAT Fraud Investigation – An investigation carried out by the tax authori… #
VAT Fraud Investigation – An investigation carried out by the tax authority to detect and prevent VAT fraud.
VAT Fraud Prevention – Measures taken by the tax authority to prevent VAT… #
VAT Fraud Prevention – Measures taken by the tax authority to prevent VAT fraud, such as the use of data analytics and artificial intelligence.
VAT Number – A unique identifier issued by the tax authority to a registe… #
VAT Number – A unique identifier issued by the tax authority to a registered person, which must be quoted on all VAT invoices and returns.
VAT Registration – The process of registering for VAT with the tax author… #
VAT Registration – The process of registering for VAT with the tax authority.
VAT Return – A form that must be submitted by a VAT #
registered person to the tax authority, showing the VAT due or repayable for a specified period.
VAT Returns and Reporting – The process of completing and submitting VAT… #
VAT Returns and Reporting – The process of completing and submitting VAT returns and other reports to the tax authority, and paying any VAT due.
VAT Regulations – The rules and guidelines that govern the operation of V… #
VAT Regulations – The rules and guidelines that govern the operation of VAT.
VAT Rules – The specific requirements that must be followed when accounti… #
VAT Rules – The specific requirements that must be followed when accounting for VAT.
VAT Schemes – Schemes that allow businesses to account for VAT on a simpl… #
VAT Schemes – Schemes that allow businesses to account for VAT on a simplified basis, such as the Flat Rate Scheme and the Cash Accounting Scheme.
VAT Solutions – Software or other tools that help businesses to manage th… #
VAT Solutions – Software or other tools that help businesses to manage their VAT obligations, such as VAT return preparation and filing tools.
VAT Training – Training provided to businesses and individuals to help th… #
VAT Training – Training provided to businesses and individuals to help them understand their VAT obligations and how to comply with them.
GST – Goods and Services Tax, a consumption tax that is levied on the sup… #
GST – Goods and Services Tax, a consumption tax that is levied on the supply of goods and services.
GST Control Report – A report that shows the GST due or repayable for a G… #
GST Control Report – A report that shows the GST due or repayable for a GST period, and the input tax and output tax for the period.
GST Due Date – The date by which a GST #
registered person must submit their GST return and pay any GST due to the tax authority.
GST Registration – The process of registering for GST with the tax author… #
GST Registration – The process of registering for GST with the tax authority.
GST Return – A form that must be submitted by a GST #
registered person to the tax authority, showing the GST due or repayable for a specified period.
GST Regulations – The rules and guidelines that govern the operation of G… #
GST Regulations – The rules and guidelines that govern the operation of GST.
GST Rules – The specific requirements that must be followed when accounti… #
GST Rules – The specific requirements that must be followed when accounting for GST.
GST Schemes – Schemes that allow businesses to account for GST on a simpl… #
GST Schemes – Schemes that allow businesses to account for GST on a simplified basis, such as the Composition Scheme and the Margin Scheme.
GST Solutions – Software or other tools that help businesses to manage th… #
GST Solutions – Software or other tools that help businesses to manage their GST obligations, such as GST return preparation and filing tools.
GST Training – Training provided to businesses and individuals to help th… #
GST Training – Training provided to businesses and individuals to help them understand their GST obligations and how to comply with them.
Intra #
state Supply – A supply of goods or services that takes place within a single state or province.
Inter #
state Supply – A supply of goods or services that takes place between two different states or provinces.
Input Tax Credit – The amount that a business can claim back from the tax… #
Input Tax Credit – The amount that a business can claim back from the tax authority for the GST that it has paid on