Introduction for VAT in UK VAT

Introduction for VAT in UK

VAT, or Value Added Tax, is charged on the sale of goods and services in the UK. It is a type of ‘indirect tax’ since it is collected by businesses on behalf of the Government and is also a type of ‘consumption tax’ because it is charged on items that people consume. Any individual, a partnership, a corporate body or a club or association must register for VAT if they Supply goods or services within the UK and if the VAT taxable turnover for the previous 12 months exceed the current registration threshold of £85,000. (GOV.UK, 2018)