Everything you need to know about VAT on TaapCraft, your responsibilities as a trader, and HMRC compliance requirements.
Goods only 5% inc VAT - services 12.5% - 5.5% inc VAT
£90,000 threshold (2024/25) - mandatory registration above this
Display prices inc VAT and manage your own HMRC compliance
Two simple structures - all fees inclusive, all inc VAT
Select whether you sell goods only or services to see your rate.
Important Notes:
TaapCraft charges a simple, transparent commission:
Two structures - all inc VAT
Simple and Transparent
Every rate you see on TaapCraft is inclusive of VAT and of all transaction, payment and insurance fees, so the commission shown is the only deduction from your payout.
Unless explicitly stated otherwise:
Critical Requirement
You MUST display all service prices to customers including VAT. This is a legal requirement under UK consumer protection law. Customers must see the final price they will pay, inclusive of VAT.
£90,000 Annual Turnover (2024/25)
You MUST register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period. Registration is mandatory within 30 days of crossing this threshold.
You may choose to register for VAT even if your turnover is below £90,000 if:
You can apply to deregister if your turnover falls below £88,000 (2024/25) and you expect it to stay below that level.
Register online via HMRC:
If you are VAT registered, you must:
VAT-registered traders must:
You must keep records for at least 6 years:
If VAT-registered, you can reclaim VAT on:
TaapCraft Commission VAT Reclaim
When TaapCraft charges you commission, the VAT element can be reclaimed on your VAT return. For example, on a £1,000 services job at 12.5% inc VAT (£125 total, of which £20.83 is VAT), you can reclaim the £20.83 VAT charged on the commission.
Since April 2022, all VAT-registered businesses must use MTD-compatible software to keep VAT records and submit returns.
MTD requirements:
Serious Consequences
Failing to comply with VAT obligations can result in:
HMRC may conduct VAT inspections to verify:
Keep thorough, organized records to make any inspection straightforward.
We Strongly Recommend:
No, registration is optional below the £90,000 threshold. However, you may choose to register voluntarily if it benefits your business (e.g., to reclaim VAT on expenses).
No. You must not charge VAT or issue VAT invoices if you are not VAT registered. This is illegal and considered VAT fraud.
No. TaapCraft is a marketplace platform only. You are solely responsible for your VAT registration, charging VAT correctly, submitting returns, and complying with HMRC requirements. TaapCraft provides the commission breakdown showing VAT elements, but you must manage your own compliance.
You must monitor your rolling 12-month turnover monthly. Once you exceed £90,000 in any rolling 12-month period, you must notify HMRC within 30 days and register for VAT. The registration becomes effective from the first day of the second month after you exceeded the threshold.
Yes, if your turnover is below £150,000. The Flat Rate Scheme simplifies VAT by allowing you to pay a fixed percentage of your turnover to HMRC (typically 12-14.5% depending on your trade), rather than tracking all input VAT. This can be beneficial for some traders.
Official HMRC resources:
This page provides general information about VAT for traders using TaapCraft. It is not professional tax advice and should not be relied upon as such.
VAT rules can be complex and vary depending on your specific circumstances. You are solely responsible for ensuring your VAT registration, compliance, and returns are correct.
We strongly recommend consulting a qualified accountant or tax advisor for personalized guidance on your VAT obligations. TaapCraft accepts no liability for errors, omissions, or losses arising from reliance on this information.