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Are there any negative sides to voluntary VAT registration?

April 26, 2017Business Finance Kingdom negative registration taxes United VAT Voluntary

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Are there any negative sides to voluntary VAT registration?

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If you register and your business is making zero rated or standard rated sales, then yes you can claim VAT back on purchases used in your business. It doesn’t matter whether or not you’ve reached the threshold. If you register you will have to charge VAT (and pass it on to HMRC) on all standard rated goods and services that you sell. That’s not really a problem if your customers are mostly VAT registered businesses because they can claim it back. But if your customers aren’t VAT registered you could either – add 17.