If your business generates sales of over £70,000 you must register for Value Added Tax and charge VAT at 17½% to your customers. If your business is already registered for VAT and net sales have fallen below £68,000 you can de-register.

Not all sales are subject to VAT at 17½%. If you sell domestic fuel and power (includes calor gas), install energy-saving materials, install heating equipment or security goods that are grant funded, sell women’s sanitary products, children’s car seats, perform residential conversions or renovate and alter dwellings, please contact us to discuss the VAT rate you should be charging.

The following supplies are subject to VAT, but at a rate of 0%:

Food - Sewerage services and water works - Books - Talking books for the blind - Construction of new buildings - Protected buildings - International services - Transport - Caravans and houseboats - Gold - Bank Notes - Drugs and medicines - Imports and Exports - Charities - Clothing and Footwear

The following supplies are not subject to VAT:

Land - Insurance - Postal services - Betting, gaming and lotteries - Finance - Education - Health and welfare - Burial and cremation - Subscriptions to trade unions, professional and public interest bodies - Sport, sports competitions - Works of art - Fund raising events by charities - Cultural services

Notices, leaflets etc can be downloaded direct from HM Revenue & Customs by visiting their website