Re: Vat number Quote:
Originally Posted by tinsoldier You’re forgetting about those who sell zero rated goods. | If it’s zero rated it still applies to the threshold just not reclaimable or have to pay the tax on it.
Sales of standard-rated, reduced-rated and zero-rated goods and services all count as VATable sales. When checking annual sales to see if they exceed the VAT limit (currently £85,000), you need to add up your standard-rated, reduced-rated and zero-rated sales!
Don't be tempted to leave out zero-rated sales thinking they're not subject to VAT. Remember that zero-rated sales are still subject to VAT - just at a rate of 0%! The only sales that you can leave out are referred to as VAT-exempt.
So if the OPs total VATable sales exceed the VAT limit - or are close to doing so - they will need to register their business for VAT. If it’s not then there’s no point to register, although you can voluntarily do so, there’s no advantage to it
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