Many UK businesses supply a mix of taxable and exempt goods or services. This falls under partial exemption rules.

You must register for VAT if your taxable turnover exceeds £90,000 in a rolling 12-month period, or you expect to exceed this threshold within 30 days.

This assessment is done excluding the exempt turnover

Important notes:

• Taxable supplies include standard-rated, reduced-rated, and zero-rated goods/services
• Zero-rated supplies count toward the VAT threshold
• Exempt supplies do not count toward the threshold

Once registered, you must:

• Charge VAT on taxable supplies
• Reclaim VAT only on costs related to taxable activities
• Keep separate records for taxable and exempt supplies and perform partial exemption calculations if needed