All work which is not specifically stated to be zero rated or exempt is standard-rated, i.e. VAT is chargeable at the current rate of 17.5% and the trader may deduct any input tax suffered when he is making his return to the Customs and Excise. If for any reason a trader makes a supply and fails to charge VAT when he should have done so (e.g. mistakenly assuming the supply to be zero rated), he will have to account for the VAT himself out of the proceeds. If there is any doubt about the VAT position, it is safer to assume the supply is standard rated, charge the appropriate amount of VAT on the invoice and argue about it later.

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