In the United Kingdom, the standard VAT rate is 20%. While many micro-businesses are not obligated to register for VAT, under specific conditions, VAT registration is mandatory. Following registration, businesses must submit VAT returns to the UK tax authorities.
I. Registration is mandatory in the following cases:
- The total turnover in the past 12 months exceeded £85,000.
- The business’s turnover is expected to exceed £85,000 in the next 30 days.
II. Other cases requiring registration, regardless of the VAT taxable turnover:
- The taxpayer is located outside the United Kingdom.
- Businesses operating outside the United Kingdom that deliver any goods or services to the territory (or are expected to do so in the next 30 days).
III. Voluntary Registration:
- A business with an annual turnover below £85,000 may voluntarily choose to register for the UK VAT system.
- It’s crucial to note that every business must fulfil its VAT payment obligations from the date of VAT registration.
