posted on May, 28 2009 @ 04:25 PM
VAT is mandatory for UK companies who turnover more than ~£60k p/a.
If your company doesn't exceed that value, then you can become voluntarily registered, which is something i've done to reclaim all the 17.5% charges
on invoices from three years previous.
Companies can stay competitive by not becoming VAT registered and thus undercutting competitors quotes.
There was something a while back called Carousel fraud
, where people were bypassing VAT
by sending goods around the houses in European countries and still charging the end customer for VAT.
Since the bailouts, the UK g'ment has reduced VAT to 15%, but suspect it will rocket to 19% once they are ready to push forward with their full blown