From the course: Understanding UK Business Finance and Tax

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Should I register my business for VAT?

Should I register my business for VAT?

From the course: Understanding UK Business Finance and Tax

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Should I register my business for VAT?

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Some businesses voluntarily register for VAT because it benefits them, whilst others are required to register for VAT, but lose out by doing so. In this video, I will talk you through how different VAT rates other than the standard rate can impact the business's finances, and I'll explain why who the customer is is important when it comes to VAT. There are different VAT rates for different types of products and services. The main ones are standard-rated, zero-rated, reduced-rate, and exempt. It's useful to check on the government website to see what VAT rate applies for the goods and services you sell. Most goods and services fall into the standard-rated category. An example of a zero-rated good is baby clothes, because the government doesn't want to collect tax and increase the price for new parents. It's great for businesses that are zero-rated because they can claim VAT as standard-rate for purchases, but don't have to add VAT to sales. These businesses often receive a VAT refund…

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