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GB VAT stands for Goods and Services Tax (VAT) in the United Kingdom. It is a type of indirect tax imposed on the sale of goods and services within the UK. The UK government collects the tax from businesses and individuals and then redistributes it to the public sector. It is also known as Value Added Tax (VAT) or simply VAT.
VAT is a consumption tax, meaning that it is paid by consumers when they purchase goods and services. It is calculated as a percentage of the price of the goods or services purchased. The current rate of VAT in the UK is 20%.
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Businesses are responsible for collecting and paying the tax to the government. They must register for VAT if their turnover is above a certain threshold. Businesses must also keep records of their sales and purchases and submit returns to HM Revenue and Customs (HMRC) on a regular basis. The rate of VAT that businesses charge their customers depends on the type of goods or services they are selling.
VAT is an important source of revenue for the UK government and helps to fund public services. It is also used to reduce the cost of goods and services for consumers. By taxing businesses, the government can ensure that businesses are paying their fair share of taxes and that the tax burden is shared between businesses and consumers.