What do I include in my Flat Rate Turnover for VAT?

Your flat rate turnover is all the supplies your business makes, including VAT. This means all of the following:

  • the VAT inclusive sales and takings for standard rate, zero rate and reduced rate supplies
  • the value of exempt income, such as any rent or lottery commission
  • supplies of capital expenditure goods, unless they are supplies on which VAT has to be calculated outside the flat rate scheme
  • the value of any despatches to other Member States of the EC if you are making intra EC supplies

Note: as exempt and zero rate supplies are included in your flat rate turnover you apply the flat rate percentage to the exempt and zero rate turnover. You may pay more VAT by being on the scheme if these supplies are a larger proportion of your business turnover than the average for your trade sector.

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