Term Explainer
What is VAT?
VAT is Value Added Tax in the UK. Registered businesses charge it on eligible invoices.
VAT is a tax added to many goods and services in the UK.
If your business is VAT-registered, invoices normally include VAT and your VAT number.
If you are not registered, you should not add VAT to your invoices.
Review status: Pending legal review
Last reviewed: 2026-03-05