VAT: Overview

VAT generates more tax for the Treasury than any other impost - apart from income tax and national insurance contributions. The impact of VAT on businesses can therefore be very considerable.

In particular, the decision whether or not to register may be crucial for the profitability of very small businesses especially in their early start-up years. Then making sure that the VAT systems run smoothly – both charging and claiming the right amounts can make all the difference to many organisations.

There are a number of special rules and regimes and it is important that managers and business accountants departments are clear about how they operate.