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Written question asked by Wendy Chamberlain (Liberal Democrat) on Thursday, 23 February 2023, in the House of Commons. It was due for an answer on Monday, 27 February 2023. It was answered by Victoria Atkins (Conservative) on Tuesday, 28 February 2023 on behalf of the Treasury.

VAT

Question

To ask the Chancellor of the Exchequer, how many businesses became eligible to pay VAT in (a) 2023 and (b) each of the preceding five years; and if he will make an estimate of the number and proportion of those businesses that would not have become eligible for VAT payments if the threshold had risen in line with inflation.

Answer

The UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD at £85,000. This keeps the majority of businesses out of VAT altogether.

The number of businesses newly registering for VAT in each year can be found here: Value Added Tax (VAT) annual statistics - GOV.UK (www.gov.uk), see Table T2.

Secondary information

Type
Written question
Reference
151416
Session
2022-23
Subjects
Inflation VAT
Contains statistics
Yes
Link
View this Written question on www.parliament.uk