US·UK Accountants

Glossary · UK Tax

VAT

VAT is a UK consumption tax charged on most goods and services. Businesses must register once taxable turnover crosses the current registration threshold, then charge VAT and file periodic returns with HMRC.

SH

By Sam H., Founder & Lead Advisor

Reviewed by Katie M.

Value Added Tax

In more detail

VAT is added at each stage of supply, with registered businesses collecting it on sales and reclaiming it on purchases. Registration becomes mandatory once taxable turnover exceeds the current threshold, though voluntary registration is possible. VAT is a UK matter with no US equivalent, but it is a core compliance obligation for cross-border businesses trading in the UK.

Does VAT apply to your situation?

Cross-border tax turns on the detail of your circumstances. Book a free consultation and we'll tell you exactly where you stand.