VAT Beginner’s Guide: Essential Basics for UK Business Registration and Rates

• VAT is a tax charged on most business transactions in the UK, proportionate to the value of goods and services supplied, with taxable supplies forming the taxable turnover
• There are three VAT rates in the UK including 20 percent standard rate for most items, 5 percent reduced rate for items like domestic fuel and energy saving materials, and 0 percent zero rate for food, books, children’s clothing and exports
• Businesses must register for VAT when taxable turnover reaches or exceeds the current threshold of 90,000 pounds in the past twelve months, or when expecting to exceed this amount in the next thirty days
• Certain services are exempt from VAT including financial services, property transactions, insurance, education and healthcare, and these exempt supplies do not count toward taxable turnover
• Businesses making only exempt supplies cannot register for VAT, while those making only zero rated supplies may choose to register voluntarily which is usually beneficial

Source: marcusward.co

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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