- VAT stands for Value Added Tax
- VAT is added to most goods and services sold by a VAT registered business
- The standard rate for VAT is 20 percent
- Some goods and services charge VAT at a lower rate
- Registering for VAT means you are responsible for collecting VAT on your taxable sales and paying it to HMRC
- You must register for VAT if your taxable turnover goes over the 90,000 pound registration threshold
- The VAT threshold in the UK is 90,000 pounds
- You can register for VAT online through a Government Gateway account
- You can choose a VAT accounting scheme to suit your business
- After registering for VAT, you can reclaim any VAT paid on business purchases
- You are responsible for charging VAT on any goods or services you sell, paying the VAT due to HMRC, submitting VAT returns, and keeping MTD compliant VAT records
Source: pandle.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
