Do I need to pay VAT?

[harrybuk]

Hi,

I run a small business, and I need to know at what point do I need to pay VAT? Do I need to pass a threshold first? (If say, I only earn 5k in the year, would I need to pay VAT?)

Thanks in advance

 

[TheBlogshop]

Hi Harry,

I believe the threshold for registering for VAT is £77,000 per annum, but you can register voluntarily if your turnover (of VATable goods or services) is less than this.

 

[businessfunding]

I think your question is a little confused.

You always pay VAT, so I'm guessing the question is do you need to charge VAT, which is answered above.

Issues to look at in this context are:

- are you likely to meet the threshold stated?
- Who will your customers be (are they likely to be VAT registered)?
- Are you buying in significant VATable supplies.

 

[kulture]

You always have to pay VAT. Registering for it means that you can claim it back BUT must also charge it on all sales.