Businesses that are VAT registered must pay VAT to which government body?

Businesses that are VAT registered must pay VAT to which government body?

• A. HM Revenue and Customs
• B. Department of Business
• C. Tax Office
• D. Financial Conduct Authority

Answer: (A)

Businesses that are VAT registered are required to pay Value Added Tax (VAT) to HM Revenue and Customs (HMRC). HMRC is the UK government body responsible for the collection of taxes, including VAT, and the administration of related regulations. When a business is VAT registered, it collects VAT on behalf of the government from its sales and is also entitled to reclaim the VAT it has paid on its purchases. The consistent oversight by HMRC ensures compliance with VAT legislation, including filing periodic VAT returns and remitting the correct amount of tax owed. This structure helps maintain transparency and accountability in the tax system, making HMRC the appropriate authority for VAT matters. The other government bodies listed are not directly involved in the collection of VAT: the Department of Business focuses on business policies and support, the Tax Office is a general term that does not specifically refer to VAT collection, and the Financial Conduct Authority oversees conduct in financial markets rather than tax collection.

Businesses that are VAT registered are required to pay Value Added Tax (VAT) to HM Revenue and Customs (HMRC). HMRC is the UK government body responsible for the collection of taxes, including VAT, and the administration of related regulations. When a business is VAT registered, it collects VAT on behalf of the government from its sales and is also entitled to reclaim the VAT it has paid on its purchases. The consistent oversight by HMRC ensures compliance with VAT legislation, including filing periodic VAT returns and remitting the correct amount of tax owed. This structure helps maintain transparency and accountability in the tax system, making HMRC the appropriate authority for VAT matters.

The other government bodies listed are not directly involved in the collection of VAT: the Department of Business focuses on business policies and support, the Tax Office is a general term that does not specifically refer to VAT collection, and the Financial Conduct Authority oversees conduct in financial markets rather than tax collection.