UK VAT
VAT (Value Added Tax) is a tax applied to most goods and services sold in the UK. Different countries have varying VAT rules.
The current VAT registration threshold in the UK is £90,000. Once your turnover exceeds this in any 12-month period, VAT registration is mandatory.
Businesses that don’t meet this threshold can still opt to register voluntarily, which includes regular VAT returns and payment of any due VAT.
UK VAT Rates
There are three main VAT rates in the UK:
- Standard rate: 20% – applies to most goods and services.
- Reduced rate: 5% – applies to certain products like children’s car seats and solar panels.
- Zero rate: Some goods and services, such as healthcare, education, and financial services, are VAT-exempt.
Advantages of Registering for UK VAT
- Once registered, your business will be issued a VAT number, which enhances credibility.
- Simplifies cross-border transactions, especially if both businesses are VAT-registered, avoiding complex tax procedures.
- Enhances efficiency and transparency in financial management.
- Improves cash flow management, potentially assisting with short-term liquidity needs.
How We Can Help?
Whether you are registering for VAT voluntarily or due to mandatory requirements, our team is here to assist.
If you are an overseas company, our international team can provide multilingual support, so you don’t need to worry about language barriers.
In addition to VAT registration, we offer ongoing filing services in line with the respective country’s requirements.