VAT

Should your business register for VAT before you hit the threshold?

The case for registering early, and when it's better to wait.

Voluntary VAT registration can help if you sell mainly to VAT-registered businesses and want to reclaim input VAT. It is often better to wait if your customers are the public and cannot reclaim VAT.

Should your business register for VAT before you hit the threshold?

Voluntary VAT registration can make sense if you sell to VAT-registered businesses and want to reclaim input VAT. It is less attractive if your customers are the public and cannot reclaim the VAT you add to prices.

The right answer depends on your customer base, cash flow and how close you are to the compulsory threshold.

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