Who Charges Vat And What Vat Is Charged On

VAT-registered businesses add VAT to the sale price of most goods and services they provide.

When you must register for VAT

If you're a business and the goods or services you provide count as what's known as 'taxable supplies' (see 'What is VAT charged on' below) you'll have to register for VAT if either:

  • your turnover for the previous 12 months has gone over a specific limit - called the 'VAT threshold' (currently 70,000)
  • you think your turnover will soon go over this limit

You can choose to register for VAT if you want, even if you don't have to.

What is VAT charged on?

If you're VAT-registered you'll have to charge VAT on any goods and services that you provide in the UK that are VAT taxable. You charge VAT on the full sale price, even if you accept goods in part exchange or through barter instead of money.

We offer a range of solutions tailored to the tax needs of small business and companies. Contact us online using our online tax enquiry form or alternatively call us today.