online accounting software

Definition: An acronym standing for value added tax. It is a tax surcharge in addition to the retail price of a good or service.

Where VAT is applicable

In the United Kingdom and the European Union, VAT is a tax that a consumer pays when they purchase goods and services. Where VAT is payable, it is most often included in the price of the goods or service that is being purchased, but it is sometimes shown separately. Not all goods attract VAT.

Currently in the UK, the standard rate of VAT (since 01/01/10) is 17.5%.

In North America, VAT is called sales tax.

Important things to remember

There are numerous exceptions and special rules within tax laws and these laws are updated regularly. When dealing with the accounting of input VAT and output VAT, you should be careful so that you do not accidentally book the VAT incorrectly. For more information contact your local VAT office.
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Synonyms
  • Values added tax
Related words
More than 48,000 companies are using e-conomic

Simple, flexible and secure. All you need is Internet access.


That is why thousands of companies have chosen e-conomic as their bookkeeping and accounting system.


e-conomic makes it easier to collaborate with your accountant or external bookkeeper.

Contact

e-conomic international a/s
Wildersgade 10 B
DK - 1408 Copenhagen K
Denmark
Tlf.:
Fax:
Hotline:
Email:
+45 88 20 48 40
+45 88 20 48 42
+45 88 20 48 41
info@e-conomic.com

e-conomic in brief

e-conomic is an online accounting software used by more than 48,000 companies and 4,100 accountants worldwide - from sole practitioners to large accounting firms. The software is easy to use and flexible, and you can give your accountant free access.