← Glossary Business glossary VAT calculator
What is VAT (Value Added Tax)?
A tax added to most goods and services, which some businesses must charge.
VAT is a consumption tax. Once your taxable turnover passes the UK registration threshold, you must register, charge VAT on your sales, and pass it to HMRC.
Below the threshold you generally do not charge VAT. The rules and threshold change, so check GOV.UK for the current figures.
Run the numbers for real.
Start free tracks your money, margins and profit in one private app. Free to start.