| The amount of value added tax a company adds to the price of its product or service. Companies registered with HMRC for VAT have to charge VAT on their goods and services (with some exceptions). Every quarter they have to submit a VAT return that shows all their VAT outputs (where the company has received VAT from its customers) and all their VAT inputs (where the company has paid VAT on its purchases). If outputs exceed inputs, the company has to pay the difference to the government. If inputs exceed outputs, the company can claim a refund.
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