VAT as an indirect tax

VAT is an indirect tax payable on consumption of goods and services in the UK by the final consumer. Usually the final consumer is a non VAT registered individual or a business. It is indirect tax, as it is not directly collected by HMRC. A VAT registered business must charge VAT to its customers. A business making more than £81,000 taxable supplies must register for VAT. There are many small size businesses, which are making less than £81,000 taxable supplier a year. Is it beneficial for them to register voluntarily? To understand the benefits of voluntary registration, it is important to understand different types of supplies. There are two types of supplies. 1. Taxable supplies 2. Exempt supplies. All [...]