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V.A.T. Tax Table

VAT is a tax that’s charged on most goods and services that VAT-registered businesses provide in the UK. 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.

Rates of Tax 2013-2014
Standard Rate 20%
Reduced Rate 5%
Annual Registration Threshold £79,000
De-registration Threshold £77,000

V.A.T. Rates

There are different VAT rates, depending on the goods or services that are being provided. Currently there are three rates:

  • Standard rate 20 %
  • Reduced rate 5 %
  • Zero rate 0 %

What is Annual Registration Threshold?

If you’re in business, you must register for VAT if your VAT taxable turnover for the previous 12 months is more than £79,000. This figure is known as the VAT registration threshold. The threshold changes – usually once a year announced in the Budget – so you should regularly check your turnover against the current threshold.

What is De-registration Threshold?

The deregistration threshold is £77,000. If your VAT taxable turnover for the year is less than or equal to £77,000, or if you expect it to fall to £77,000 or less in the next 12 months, you can either:

  • Stay registered for VAT
  • Ask for your VAT registration to be cancelled
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