Taxable Turnover

VAT taxable turnover is the total value of sales you make that would be subject to VAT if you were registered.  You’ll need to register for VAT if your taxable turnover goes over the registration limit, £85,000 for 2020/2021.

You need to check your taxable turnover on a 12-month rolling period.

What to Include in Taxable Turnover

To calculate your taxable turnover, you’ll need to add up everything you sell that would be subject to VAT. If this is more than £85,000 you’ll need to register for VAT.  You’ll need to include:

  • goods and services you sell, that are not VAT exempt (see below)
  • goods you hired or loaned to your customers
  • goods taken and used for personal reasons
  • goods bartered for goods/services in exchange
  • goods and services gifted
  • services you sell from businesses in other EU countries under the reverse charge scheme 

What to Exclude from Taxable Turnover

Not everything that is sold is subject to VAT. So when working out taxable turnover you’ll need to exclude VAT exempt goods and services that you sell such as:

  • Insurance
  • Postage
  • Medical supplies
  • Children’s clothing
  • Rental income