Value added tax (VAT) is His Majesty’s Revenue and Customs Service (HMRC) tax; it is added to goods and services that are provided or sold in the UK. As of 2023, it stands at 25%.
If your company’s sales hit - or are expected to exceed - the designated threshold in the current financial year, first of all, let me say, “Congratulations!” Really, top of the line!
Next, you’ll be required to register for VAT. The 2023/2024 threshold is £85,000, but it’s worth checking every year as the threshold can change annually.
Questions? Check out questions asked and answered by our expert Company Formation Service Special Agents in our FAQs section
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