Business terms and jargon explained. Your business dictionary

What is Option to Tax

Tax Definition:-

The charge of VAT on a supply that would normally be exempt. It applies to certain supplies of land and buildings. If a decision to charge VAT is made, the value of the supplies when calculating the taxable turnover must be included. Option to Tax. is also referred to as the Election to Waive Exemption.

Crown Copyright. Material taken from HM Revenue & Customs. Reproduced under the terms and conditions of the Click-Use Licence.

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Term created / updated 2006-11-14 13:55:30

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