Value Added Tax (VAT) is a tax on consumption.
It is payable when a taxable supply is made, and applies to the sale/purchase of a good or service.
Once turnover reaches a certain level, it is compulsory for the entity supplying the good or service (company, partnership or sole trader) to register for the tax. However, it is possible to volunteer to register for this tax. In fact, sometimes voluntary registration can be advantageous. It can be reclaimed by other entities that are registered for the tax, but is generally suffered by the end consumer.
We are able to advise as to whether the business has to register for the tax, or whether to volunteer to register is beneficial, take the strain out of filing the returns, and ensure that you are using the most favourable scheme possible.
If in doubt, talk to us.
