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This guide provides an overview of VAT (Value Added Tax) in the United Kingdom, including applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is intended for businesses engaging in transactions within the UK or with UK customers.
The UK’s VAT system is governed by the UK VAT Act and aligns with EU rules for goods moved between Northern Ireland and the EU. VAT applies to most goods and services supplied within the UK, as well as on imports.
Pound Sterling (£)
GB followed by 9 digits (e.g., GB123456789)
No, not required for EU or non-EU businesses.
Yes, available for businesses below the threshold.
| Rate | Rate Type | Description |
| 20% | Standard Rate | Applies to most goods and services |
| 5% | Reduced Rate | Applies to certain goods such as energy and residential renovations |
| 0% | Zero Rate | Applies to essential goods such as food and children’s clothing |
| Business Type | VAT Registration Threshold |
| Resident Businesses | £90,000 |
| Non-Resident Businesses | No threshold; registration required for any taxable activity in the UK
(£90,000 registration threshold does apply to non-resident businesses in respect of acquisitions from other states) |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly or Quarterly | One month and seven days after the end of the filing period | One month and seven days after the end of the filing period |
| Annual (for small businesses) |  Your VAT Return is due once a year, 2 months after the end of your accounting period |  Within 2 months of month 12 |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 20% |
| Threshold for Registration | No threshold; registration required for any taxable activity |
| VAT on B2B Sales | Reverse charge mechanism applies (B2B no vat to be collected, but the sale needs to be declared in the return) |
The UK applies VAT on digital services based on the consumer’s location, and registration is mandatory for non-resident businesses providing digital services to UK customers.
E-invoicing is mandatory for B2G NHS Supplies (Healthcare- NHS (National Healthcare Services) in the UK, and invoices must comply with standard electronic formats as per HMRC guidelines.
Under the UK’s Making Tax Digital (MTD) initiative, all businesses above the VAT threshold are required to keep digital records and submit VAT returns via compatible software.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of UK VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
