SweetFA

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.

Guidance only. Tax treatment depends on your business setup. Confirm with HMRC guidance or an accountant.
Review status: Pending legal review
Last reviewed: 2026-03-05