Free Guide To VAT
Understanding and managing VAT can be challenging for many businesses. To help you stay compliant and make informed decisions, we've put together a list of frequently asked questions about VAT. To further assist you, we offer a Free VAT Guide that you can download!
VAT FAQ
Q
What is VAT?
A
VAT is a tax charged on most goods and services provided by VAT-registered businesses.
Q
What Are The VAT Rates?
A
-Standard Rate: 20%
-Reduced Rate: 5% (e.g. on home energy and children’s car seats)
-Zero Rate: 0% (e.g. on most food and children's services)
A
Businesses with a taxable turnover exceeding the VAT threshold (currently £90,000) in a 12-month period.
Q
Who Needs To Register For VAT?
A
You can register online through the HMRC website. You’ll receive a VAT registration certificate with your VAT number.
Q
How Do I Register For VAT?
A
A VAT Return is a form you fill in to tell HMRC how much VAT you have charged and how much VAT you have paid to other businesses. VAT Returns are usually submitted quarterly.
Q
What Is A VAT Return?
A
You can reclaim VAT on business-related goods and services, and partial reclaim is possible if purchases are for both personal and business use.
Q
What Can I Reclaim VAT On?
A
Most businesses submit VAT returns quarterly, but some can choose to submit annually.
Q
How Often Do I Need To Submit a VAT Return?
Q
Is VAT Applicable Overseas?
A
VAT is not typically charged to overseas buyers for exports (goods or services), but specific rules apply depending on the destination and type of transaction. Sellers should ensure compliance with the VAT regulations of both the selling and buying countries.