Coconut doesn't support VAT right now, but this is on our roadmap. In the meantime, here's some information you might find useful:
What is VAT?
VAT stands for Value-added Tax. It applies only if your business is registered for VAT and means:
- You must add VAT on your sales (usually 20%), and pay this to HMRC
- You can claim VAT back on your business purchases from HMRC.
Who VAT applies to
You only have to worry about VAT if you are VAT registered. If your turnover is over £85,000 in a 12 month period, then you must register for VAT. You can read more info on this here.
How to register for VAT
You can register for VAT online. You'll need to have a "Government Gateway" account first.
Submitting VAT returns
Once you're registered, you'll be required to submit a VAT return every 3 months. This is easiest to do using accounting software. Or if you're really brave you could try and fill it in yourself (but we don't recommend it!).
There's guidance on the Gov website about how to prepare and submit your VAT return here.