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Value Added Tax (VAT) is a tax that’s charged on most goods and services in the UK. It’s also charged on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK from other EU countries.
In order to charge VAT as a company you need to be VAT Registered. Certain professions can benefit from the Flat Rate VAT Scheme
VAT is charged when a VAT-registered business sells to either another business or to a non-business customer.
When VAT-registered businesses buy goods or services they can generally reclaim the VAT they’ve paid. If you are not VAT registered as a business you cannot reclaim any VAT you have paid out, which could be expensive if you are a business that trades with those that are on a regular basis.
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