{"id":2538,"date":"2022-06-12T23:22:15","date_gmt":"2022-06-12T23:22:15","guid":{"rendered":"https:\/\/vatonlinecalculator.co.uk\/?p=2538"},"modified":"2023-08-03T05:37:16","modified_gmt":"2023-08-03T05:37:16","slug":"what-is-vat","status":"publish","type":"post","link":"https:\/\/vatonlinecalculator.co.uk\/what-is-vat\/","title":{"rendered":"What is VAT?"},"content":{"rendered":"\n
VAT<\/a> (Value Added Tax) is a tax that businesses in the UK charge on the sale of goods and services.<\/p>\n\n\n\n HM Revenue & Customs collects VAT<\/a> on behalf of companies. By subtracting any VAT a company paid on purchases from the VAT charged to customers, a company pays VAT to HMRC.<\/p>\n\n\n\n A VAT-rated or VAT-exempt good or service is either a VAT-rated or VAT-exempt one. Services such as rent, private education, health care, insurance, and finance are exempt from VAT. Also, read What is the VAT Flat Rate Scheme?<\/a><\/p>\n\n\n\n In a year, a business must register for VAT<\/a> if its sales exceed \u00a367000 (as of 1st April 2008), or you can do so on a voluntary basis even before the sales threshold is reached.<\/p>\n\n\n\n