VAT Guidance

We provide comprehensive guidance articles on various VAT topics, equipping you with the knowledge you need to make key decisions.

Our guides help you determine exactly what VAT is, the different types of VAT and making tax digital. Whether you simply want to enhance your knowledge on VAT or are about to register, our detailed articles provide the insights you need. 

Most Searched VAT Topics

What Is VAT?
VAT (Value Added Tax) is a consumption tax charged on most goods and services in the UK. Learn what VAT is, how it works, and who needs to register for it.

How Much Is VAT?
The standard VAT rate is currently 20%, with reduced and zero-rated categories. Discover how much VAT is, and when different rates apply.

What Is the VAT Threshold?
Once your turnover exceeds this amount, VAT registration is mandatory. Find out what the VAT threshold is, and how it’s monitored by HMRC.

Flat Rate VAT Scheme
This simplified scheme benefits small businesses. Learn how the Flat Rate VAT Scheme works, who qualifies, and how it can save time (or cost more).

What Is Making Tax Digital?
MTD is HMRC’s system for digital recordkeeping and tax submissions. Discover what Making Tax Digital is, and how it affects VAT-registered businesses.

How to Do a VAT Return
VAT returns must be accurate and on time. Learn how to do a VAT return, what figures to include, and how to submit using software.

What Is Postponed VAT Accounting?
Postponed VAT lets importers delay VAT payments. Find out what postponed VAT accounting is, and how it simplifies EU imports post-Brexit.

How to Account for Reverse Charge VAT
Reverse charge shifts VAT responsibility to the buyer. Learn how to account for reverse charge VAT, and which services it applies to.

Can I Reclaim VAT on Exported Goods?
Exports are usually zero-rated, and VAT may be reclaimed. Discover whether you can reclaim VAT on exported goods, and what documentation is required.

What Are Imported Goods?
Imported goods are brought into the UK from abroad and subject to customs rules. Learn what imported goods are, how VAT applies, and what records to keep.

Is There VAT on Water Bills?
Domestic water is zero-rated, but business water may be different. Find out whether there’s VAT on water bills, and what exemptions apply.

Is There VAT on Mobile Phone Bills?
Yes, most phone charges are VAT inclusive. Discover whether there’s VAT on mobile phone bills, and how to find the breakdown.

What Is Zero Rated VAT?
Zero-rated items are taxable at 0% but not exempt. Learn what zero-rated VAT means, and which goods and services qualify.

Is There VAT on Car Insurance?
No, insurance is exempt from VAT. Find out whether there’s VAT on car insurance, and what taxes or fees may apply instead.

How to Check If a Company Is VAT Registered
You can verify a VAT number using HMRC’s checker. Learn how to check if a company is VAT registered, and why it's important for invoicing.

Is There VAT on Train Tickets?
Most public transport is zero-rated. Discover whether there’s VAT on train tickets, and what applies to season passes or upgrades.

Is There VAT on Food?
It depends on the type and how it's sold. Learn whether there’s VAT on food, and which grocery items are zero-rated.

How Do You Calculate VAT from Gross Amount?
Need to find the VAT portion of a total? Learn how to calculate VAT from a gross amount, using a simple reverse VAT formula.

How to Deregister for VAT
You can cancel your registration if your turnover drops or you close the business. Find out how to deregister for VAT, and what final return is required.

Is There VAT on Flights?
Commercial flights are zero-rated in the UK. Discover whether there’s VAT on flights, and how it applies to private aviation.

Is There VAT on Postage?
Royal Mail standard services are exempt but not all couriers. Learn whether there’s VAT on postage, and when it needs to be charged.

What Is a VAT Receipt?
It’s an invoice that includes specific VAT details. Find out what a VAT receipt is, and what it must include to support claims.

When Is VAT Due?
Due dates depend on your return frequency. Discover when VAT is due, and what happens if you miss a deadline.

Can Charities Claim Back VAT?
Only in limited cases but reliefs exist. Learn whether charities can claim back VAT, and how to apply for exemption schemes.

Does Uber Charge VAT?
Yes, for UK drivers, VAT is now standard. Find out whether Uber charges VAT, and what that means for customers and drivers.

Is There VAT on Coffee?
Coffee is usually zero-rated unless it’s hot and served. Discover whether there’s VAT on coffee, and how preparation method affects tax.

What Does VAT Qualifying Mean?
VAT-qualifying goods allow VAT to be reclaimed. Learn what VAT qualifying means, especially for cars, equipment, and leasing.

What Does Net of VAT Mean?
It refers to the price before VAT is added. Find out what net of VAT means, and how it differs from gross pricing.

Do Schools Pay VAT?
Most educational activities are exempt. Learn whether schools pay VAT, and which types of income may be taxable.

Do You Pay VAT on Second Hand Cars?
Sometimes, it depends on the seller. Discover whether you pay VAT on second-hand cars, and how margin schemes work.

Can You Claim VAT on Subsistence?
Only in strict cases like business travel. Learn whether you can claim VAT on subsistence, and what counts as allowable.

Do Sole Traders Pay VAT?
Only if registered. Find out whether sole traders pay VAT, and when registration becomes compulsory.

Is There VAT on Parking?
It depends on who operates the site. Discover whether there’s VAT on parking, and what applies to public or private spaces.

Can You Claim VAT on Client Entertainment?
HMRC is strict, most can’t be claimed. Learn whether you can claim VAT on client entertainment, and what the exceptions are.

Can You Claim VAT on Staff Entertaining?
In some cases, especially for internal events. Find out whether you can claim VAT on staff entertaining, and what records to keep.

Is There VAT on Alcohol?
Yes, alcohol is standard-rated. Discover whether there’s VAT on alcohol, and how duty differs from VAT.

Is There VAT on Books?
Most printed books are zero-rated. Learn whether there’s VAT on books, and what rules apply to e-books.

Is There VAT on Hotel Rooms?
Yes, hotels and holiday accommodation are standard-rated. Find out whether there’s VAT on hotel rooms, and how it appears on invoices.