Very simply:I have no knowledge of VAT or the system of taxation in the UK.
- Business (can be an officially incorporated company, or sole trader such as a plumber or musician) with a turnover > £85,000 must charge and collect 20% and pay to HMRC for most services or goods (NB: some are exempt or lower rate).
- Business with turnover <£85,000 can register voluntarily.
- VAT registered business can reclaim any VAT they pay on their business related purchases and expenses.
- VAT registered business do not charge VAT on exports (before brexit we did charge VAT to EU countries and vice versa - due to trade agreement whereby they are treated as if they are not exports)