Comprehensive Guide to VAT in the UK: Registration, Rates, and Compliance for Businesses

• VAT registration in the UK is mandatory for businesses with a taxable turnover over £90,000.
• The UK has VAT rates of 20%, 5%, and 0%.
• VAT returns are submitted through Making Tax Digital.
• Special schemes like the Flat Rate Scheme simplify reporting.
• Compliance with VAT rules is crucial to avoid fines.
• VAT is a consumption tax on goods and services, collected by businesses and paid to HMRC.
• Standard VAT rate is 20% for most goods and services.
• Reduced VAT rate of 5% applies to specific products like child car seats and some energy-efficient items.
• Zero-rated supplies at 0% include passenger transport and basic food products.
• Exempt supplies include cultural event fees and certain health and education services.
• Businesses must register for VAT if turnover exceeds £85,000, if based outside the UK but selling in the UK, or if importing goods over £85,000 from the EU.
• Registration involves gathering business details, submitting an application, and receiving a VAT number from HMRC.

Source: eurofiscalis.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.

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