Managing VAT Data and Reporting in AskBiz
How AskBiz handles VAT — tracking VAT on sales and purchases, supporting your VAT return, and flagging when you approach the registration threshold.
How AskBiz handles VAT
AskBiz is a business intelligence tool, not an accounting or VAT filing system. It does not file your VAT returns — that is handled by your accounting software (Xero, QuickBooks, or a dedicated MTD-compatible tool).
What AskBiz does:
- Tracks VAT-inclusive and VAT-exclusive revenue from your connected platforms so you always see the correct net-of-VAT figures in your P&L and dashboards
- Monitors your rolling 12-month turnover against the VAT registration threshold (£90,000 for 2024/25) — alerting you if you are approaching the threshold and need to register
- Provides a VAT summary report showing output VAT (on sales) and input VAT (on purchases where you are VAT registered) — useful for your accountant's VAT return preparation
For VAT filing itself, use Xero, QuickBooks, or a dedicated MTD-compatible tool.
VAT threshold monitoring
The UK VAT registration threshold (£90,000 in 2024/25) is calculated on a rolling 12-month basis — not a calendar year. This means you need to check your cumulative turnover at the end of every month, not just at year end.
AskBiz tracks your rolling 12-month turnover continuously and alerts you when:
- You cross 80% of the threshold (£72,000) → early warning to plan for VAT registration
- You cross 90% (£81,000) → register within 30 days is typically now required
- You cross 100% (£90,000) → you must be registered; if not, contact HMRC immediately
Set your VAT status in Settings → Finance → VAT Settings (Registered or Not Registered). AskBiz will configure threshold monitoring accordingly.
Note: if you are voluntary VAT registered below the threshold, set your status to Registered and AskBiz will show VAT-exclusive figures throughout.
Checking VAT treatment by product
Not all products attract the standard 20% VAT rate in the UK. Some categories are zero-rated (0% VAT: most food, children's clothing, books) or reduced-rate (5% VAT: some energy-saving products, children's car seats).
If you sell a mix of standard-rated, zero-rated, and reduced-rate products, your VAT calculations are more complex and the partial exemption rules may apply.
In AskBiz, go to Products → [product] → Tax Settings to assign the correct VAT rate to each product. AskBiz will then apply the correct rate when calculating output VAT in the VAT Summary report.
Cross-border VAT for international sales
Selling to customers in the EU, US, or other international markets introduces additional VAT and sales tax complexity:
EU (post-Brexit): Sales to EU consumers above £8,818 per member state per year require VAT registration in that state (or use of the EU One Stop Shop scheme). AskBiz tracks revenue by EU country and flags when you approach country-specific thresholds.
UK import VAT: If you import goods from outside the UK, you pay import VAT (20%) at the border. This is reclaimable as input VAT on your VAT return if you are VAT registered. AskBiz tracks import VAT paid (from your supplier invoices and duty statements) so your accountant has the data needed to reclaim it.
For complex cross-border VAT situations, work with a VAT specialist — AskBiz provides the data; the compliance decisions require professional advice.