Not automatically. It depends on exactly what you sell. A dentist's check-ups are exempt while teeth whitening is standard rated, and building work can be 0%, 5% or 20%.
Following my recent video on VAT registration, I was asked how you know whether you need to register, because £100,000 turnover doesn't automatically mean you do.
It depends on exactly what services you're providing, and some of what you sell may not count towards the threshold at all.
How does VAT work for a dentist?
Take a dentist:
- General check-ups are VAT exempt
- Cosmetic treatments like teeth whitening are standard rated, so 20% VAT
Same dentist, same practice, different VAT treatment.
HMRC's VAT Notice 701/57 says registered dentists can exempt their supplies of dental care and treatment, whether provided privately or on the NHS, and that services undertaken purely for cosmetic reasons are standard-rated. Cosmetic dentistry that forms part of oral health treatment is looked at case by case.
What VAT rate applies to building work?
Or construction:
- Building a brand new home can be 0% VAT
- Renovating a home that's been empty for at least two years can be 5%
- Many other building work is 20%
HMRC's VAT Notice 708 lists the construction of new qualifying dwellings at 0% and the renovation or alteration of residential premises that have not been lived in for 2 years or more at 5%. It says the construction of a new building and work to an existing building is otherwise normally standard-rated.
Which sales count towards the threshold?
HMRC's guidance on when to register for VAT defines taxable turnover as the total value of everything you sell that is not VAT exempt or out of scope. Zero-rated and reduced-rated sales still count, so a builder's 0% new homes are part of the figure. It is exempt sales, like the dentist's check-ups, that come out.
Should you check with a tax adviser?
HMRC publishes guidance you can check, but it's always worth speaking to a tax adviser first. Get the VAT treatment wrong and it can be very expensive, whether that's registering when you didn't need to or not registering when you should have.
The basics of the threshold are in do exempt sales count towards the VAT threshold, and a worked example with exempt sales is in do you need to register for VAT if you sell gold bullion and jewellery.
The VAT treatment of a sale depends on its exact facts, so this is general information rather than advice on your position. If you are close to the threshold, talk to us.
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Book a discovery callCommon questions
Only if your taxable turnover is over £90,000 for the last 12 months. Taxable turnover leaves out VAT exempt and out of scope sales, so total turnover can be higher without you needing to register. See [when to register for VAT](https://www.gov.uk/vat-registration/when-to-register).
Dental care and treatment by registered dentists and dental care professionals can be exempt, privately or on the NHS. Services undertaken purely for cosmetic reasons are standard-rated. See [VAT Notice 701/57](https://www.gov.uk/guidance/health-professionals-pharmaceutical-products-and-vat-notice-70157).
The construction of a new qualifying dwelling is zero-rated. Renovating residential premises that have not been lived in for 2 years or more can be 5%, and most other building work is standard-rated. See [VAT Notice 708](https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708).
Yes. HMRC's guidance counts everything you sell that is not VAT exempt or out of scope, and lists zero-rated goods as part of taxable turnover. See [when to register for VAT](https://www.gov.uk/vat-registration/when-to-register).
Simon Jacobs is a Chartered Tax Adviser (CTA · ACA) and PwC trained, founder of SRJ International. He advises UK business owners on tax, profit extraction and exit. Read his full profile →
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