VAT - the basics

Last Updated: 29 Nov 2021

Contents

  1. What does this involve?
  2. Am I eligible?
  3. What does this cost?
  4. Who is this for?
  5. How long does this take?
  6. Important information
  7. Next steps

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What does this involve?

VAT-registered businesses must charge VAT on most goods and services sold in the UK – whether the customer is a business or an individual. Your business must register for VAT if you have exceeded, or think you will soon exceed, the current ‘VAT threshold’ set by HM Revenue and Customs (HMRC). Read the Business Gateway guide to the basics of VAT.

Am I eligible?

Yes, if you are thinking about starting, or already run, a business in Scotland.

What does this cost?

This is a free and impartial service.

Who is this for?

Any business based in Scotland, at any stage in its life cycle.

How long does this take?

Learn the basics of VAT in 3 minutes.

Important information

When you submit your quarterly VAT return, you enter how much VAT you’ve charged customers (output tax) and how much you’ve paid on business purchases (input tax).
If your output tax exceeds your input tax, you will pay the difference to HMRC. If your input tax is the higher of the two figures, you can claim back the difference.

Next steps

Visit the Business Gateway website for more advice on the basics of VAT.

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