Value-added tax in England is a goods and services tax. It is an indirect tax, and the taxation subject is the value of sales of goods and services, whereas the increase in their net value is the tax basis.
There are three VAT rates, depending on the goods or services:
20% - standard rate
5% - reduced rate
0% - Nil rate
There are also some goods and services that are:
exempt from VAT
outside of the UK VAT system
The obligation to register for VAT arises when a business reaches a turnover of £ 85,000 or believes that it will soon exceed this threshold. Every business can register voluntarily for VAT at any time of its operation.
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