Guide

Understand VAT for your business

Introduction

VAT - or Value Added Tax - is a tax charged by VAT-registered businesses on the supply of most goods and services.

If you are or become VAT-registered, you must charge VAT where appropriate on the goods or service you sell. However, you can also reclaim any VAT you have paid when buying things for your business.

The thresholds for registering for VAT are outlined below.

Circumstance Threshold
VAT registration More than £85,000
Registration for distance selling into the UK More than £70,000
Registration for bringing goods into the UK from the EU More than £85,000
Deregistration threshold Less than £83,000
Completing simplified EC Sales List £106,500 or less and supplies to EU countries of £11,000 or less

This guide, through a series of simple interactive learning tools will help you and your business understand how VAT works, how to meet your VAT obligations, VAT registration and how to calculate VAT.

Please note: the VAT learning tools show ways of working out VAT that HM Revenue & Customs recommends. VAT rates can change, but if they do the calculation methods remain the same.

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Part of My New Business
Running your business checklist Show all

1
Know your legal responsibilities

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2
Understand tax and VAT

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3
Sell and market your products or services

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4
Sell outside Northern Ireland

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