Value Added Tax (VAT) is a tax applied to the purchase price of certain goods, services, and other taxable supplies bought and sold within the UK.
It is charged at different rates depending on the type of product or service, with some items being exempt or subject to reduced rates.
Businesses that meet the VAT threshold must register and charge VAT on their sales, while also being able to reclaim VAT on business-related purchases. VAT is collected at each stage of the supply chain and ultimately paid by the end consumer.
For more detailed information and guidance, visit the VAT pages on the official UK government website at gov.uk.