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VAT and GST > VAT and GST - Pg. 161

CoMPAny TAxATIon AnD FInAnCIAl MAnAGEMEnT 161 HMRC sets turnover limits for VAT registration. If a business exceeds this limit it must register for VAT. However, it may also register for VAT if it is below the limit. At the present time you may have to register if your sales are over £73,000 for the last 12 months; otherwise you may be able to register voluntarily. Certain items are outside the scope of VAT and these are called exempt. Examples of these are education and training (if certain con- ditions are met), subscriptions to certain membership organizations, the provision of credit, insurance and certain fundraising events by registered charities. Always check with HMRC or your indirect taxation authority to determine if a product or service is exempt. Get it wrong and you could face a huge bill for uncollected tax. The charge to VAT VAT is charged on most goods and services that a VAT-registered business provides in the UK. It is also charged on goods and on some