Everything You Need to Know About Value-Added Tax (VAT) in the UK

Value Added Tax (VAT) is a type of tax on goods and services consumed in the United Kingdom. It is the most common way for businesses to collect taxes from their customers, and it can be confusing for those unfamiliar with it. In this blog post, we will discuss everything you need to know about VAT in the UK, including who needs to pay it, how much it is, and when it needs to be paid. With our online VAT calculator, you can easily add or remove VAT from UK prices by entering the inclusive or exclusive price.

Who Pays VAT?

In the UK, businesses are required to register for VAT if they make more than £85,000 in sales per year. There are also certain types of business activities that require registration regardless of sales level. Once registered, businesses must charge VAT on any taxable goods or services they sell at the standard rate of 20%. This rate can sometimes be reduced or increased depending on certain factors such as whether or not a product or service is zero-rated or exempt from VAT altogether.

How Much is VAT?

The standard rate of VAT in the UK is currently 20%. This means that all taxable goods and services sold by registered businesses are subject to a 20% tax. The same applies to imports from outside the EU too; any import will incur a 20% tax unless it is exempt from VAT or falls under one of several other exceptions such as “low-value consignment relief” which allows certain items worth less than £15 (including postage) to enter without incurring any taxes.

When Does VAT Need To Be Paid?

Businesses must pay their collected VAT at least once every three months through HMRC’s online portal. Businesses must also keep track of their total sales as well as their total taxes due so that they can accurately report this information when submitting their returns via HMRC’s portal. Businesses must also keep detailed records of all purchases and sales made during each quarter so that they can accurately calculate their net profit and total taxes owed at the end of each period.


All businesses operating in the United Kingdom must pay value-added tax (VAT). The current standard rate for most goods and services sold in the country is 20%, although there are some exceptions depending on certain factors. Businesses must register with HMRC if their annual sales exceed £85,000 and submit returns via HMRC’s online portal at least once every three months, detailing their total sales and taxes due for that period. Keeping detailed records throughout each quarter makes filing these returns easier while ensuring accuracy so that you don’t incur any penalties from HMRC due to incorrect reporting. Knowing how much you owe—and when—is essential for staying compliant with UK tax law!

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