VAT thresholds

VAT thresholds refer to the minimum annual sales level a business must reach to be required to register for Value Added Tax (VAT). If a business's turnover exceeds this threshold, it must charge VAT on its sales and can reclaim VAT on its purchases. The threshold varies by country; for example, in the UK, it's currently £85,000. Below the threshold, businesses can choose to register voluntarily. Understanding these thresholds is crucial for financial planning and compliance with tax regulations.