Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production or distribution in the United Kingdom. VAT is one of the major sources of revenue for the UK government (HMRC) and is governed by specific regulations. It’s important to stay up to date with the latest VAT regulations and consult with a tax professional or accountant, especially for complex situations. VAT can be a complex area, and errors or non-compliance can result in penalties and financial consequences.

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