Official Statistics

Annual UK VAT statistics 2023 to 2024 commentary

Updated 6 November 2024

1. Headlines

The latest headlines for Value Added Tax (VAT) statistics are:

• Total VAT receipts in the financial year 2023 to 2024 increased by 6% to £169 billion compared to £160 billion in 2022 to 2023

• the VAT population in 2023 to 2024 was 2,178,950, with 238,176 new registrations and 273,768 de-registrations in-year

• total net Home VAT liabilty in 2023 to 2024 was £173 billion

• the Wholesale and Retail sector was the largest contributor to net Home VAT liability (32%) with a total of £55 billion

• traders with an annual turnover of greater than £10 million paid 75% of total net Home VAT liability (£130 billion)

2. About this release

This official statistics publication provides information on VAT receipts, Home VAT and Import VAT. It also includes Home VAT declared on traders’ returns classified by sector, sub-sector and trade group as well as information on VAT registrations, de-registrations and trader population.

VAT is charged when a VAT-registered business sell goods or services to another business or non-business customer. When VAT-registered businesses buy goods or services, they can generally reclaim the VAT they have paid.

There are three rates of VAT depending on the goods or services the business provides:

• standard: 20%
• reduced: 5%
• zero: 0%

There are also some goods and services that are:

• exempt from VAT
• outside the UK VAT system completely

For further information, please go to VAT rates

There are three main measures of VAT revenue:

• on an accurals basis (when the VAT liability arose)
• on a declared liability basis (when HMRC is notified of the VAT liabilty)
• on a cash receipts basis (when VAT was paid to HMRC)

As the UK has now left the EU, Table 13 showing details on VAT Mini One Stop Shop (MOSS) is no longer applicable and so has been removed from the publication. Previous versions of this statistics release are available on the National Archives website.

As part of a programme of continuous improvement, the publication as a whole has undergone several changes to enhance the user experience and achieve greater accessibility. HMRC welcomes user engagement to improve the departments National and Official Statistics. You can contact statistics producers via our feedback avenues.

3. VAT receipts

Total VAT receipts are equal to Home VAT receipts plus Non-postponed accounting import VAT receipts and is the amount paid to HMRC. Total VAT receipts include accounting adjustments to remove penalties and occasional payment errors.

Receipts dropped significantly between March 2020 and June 2020 due to the VAT payment deferment policy. Further reductions in receipts across the 2020 to 2021 financial year can be attributed to economic impacts of the Covid-19 pandemic as well as the temporary reduced rate of 5% for hospitality, holiday accommodation and attractions.

Postponed VAT Accounting was introduced in January 2021. Postponed VAT Accounting allows traders to declare their Import VAT on their VAT return rather than paying Import VAT upfront when the goods are imported. Postponed accounting import VAT receipts cannot easily be separated out from the Home VAT receipts. Therefore, from February 2021 the Import VAT figures reported in this bulletin are for Non-postponed accounting import VAT only.

Figure 1 illustrates the following changes in Total VAT, Home VAT and Non-postponed accounting import VAT receipts over the last 10 financial years:

• Total VAT receipts for 2023 to 2024 were £169 billion. This was composed of £159 billion of Home VAT receipts and £10 billion of Non-postponed accounting import VAT receipts

• Total VAT receipts have increased by £9 billion since 2022 to 2023

• Home VAT receipts have increased by £12 billion and Non-postponed accounting import VAT receipts have decreased by £3 billion since 2022 to 2023

• the changes in Total VAT receipts are a continuation of the increasing trend seen over the past 10 financial years, during which Total VAT receipts have increased by £58 billion (52%)

• Home VAT receipts have been making up an increasing share of Total VAT receipts since 2020 to 2021

Figure 1: VAT receipts for the previous ten financial years to 2023 to 2024.

Financial Year	Home VAT (£ billion)	Mixed Import VAT* (£ billion)	Non-Postponed Accounting Import VAT (£ billion)	Non-EU Import VAT (£ billion)	Total VAT (£ billion)
2014-15	86.0	0.0	0.0	25.4	111.4
2015-16	89.2	0.0	0.0	25.7	114.9
2016-17	91.8	0.0	0.0	28.	119.8
2017-18	96.2	0.0	0.0	30.3	126.4
2018-19	99.8	0.0	0.0	32.8	132.5
2019-20	97.5	0.0	0.0	32.4	129.9
2020-21	73.4	28.2	0.0	0.0	101.7
2021-22	141.4	0.0	16.2	0.0	157.5
2022-23	146.7	0.0	13.0	0.0	159.7
2023-24	158.9	0.0	10.0	0.0	168.9

*All non-EU Import VAT up to 31st December 2020 and Non-postponed accounting import VAT from 1st January 2021.

For the full dataset that accompanies Figure 1 go to Value Added Tax (VAT) tables 2023 to 2024.

Net Home VAT receipts are equal to Home VAT payments made to HMRC by registered taxpayers minus Home VAT repayments made from HMRC to taxpayers. Taxpayers make payments to HMRC when their net Home VAT liability is positive and receive repayments from HMRC when their net Home VAT liability is negative.

Figure 2 illustrates the following changes in Home VAT receipts broken down into payment and repayment receipts over the last 10 financial years:

• Home VAT receipts for 2023 to 2024 were composed of £271 billion of payment receipts and -£112 billion of repayment receipts

• payment receipts increased by £16 billion and repayment receipts increased by £4 billion since 2022 to 2023

• the year-on-year increases in payment receipts have been larger since 2020 to 2021, reflecting the increasing share of Total VAT receipts which are Home VAT receipts

• payment receipts have increased by £109 billion (67%) and repayment receipts have increased by £36 billion (48%) during the past 10 financial years

Figure 2: VAT payment and repayment receipts for the previous ten financial years to 2023 to 2024.

Financial Year	Payments (£ billion)	Repayments (£ billion)	Net Home VAT receipts (£ billion)
2014-15	161.8	-75.8	86.0
2015-16	166.4	-77.2	89.2
2016-17	172.7	-81.0	91.8
2017-18	181.1	-85.0	96.2
2018-19	189.2	-89.4	99.8
2019-20	189.5	-92.	97.5
2020-21	161.8	-88.4	73.4
2021-22	237.7	-96.3	141.4
2022-23	254.6	-107.8	146.7
2023-24	270.7	-111.8	158.9

For the full dataset that accompanies Figure 2 go to Value Added Tax (VAT) tables 2023 to 2024.

4. VAT population

VAT population figures refer to the live trader population during the year. Live traders are VAT registered traders who were active at 31 March of the fiscal year or who had submitted a non-nil return through the year.

Businesses need to register for VAT when their turnover of VAT taxable goods and services is over the VAT registration threshold; businesses below the VAT registration threshold may also choose to voluntarily register.

4.1 Overview

Figure 3 illustrates the following changes in the VAT population over the last 10 financial years:

• the VAT population consisted of 2,178,950 traders in 2023 to 2024, 213,840 lower than in 2022 to 2023

• decreases in the VAT population since 2021 to 2022 have meant the VAT population is now just 50,870 traders (2%) greater than 10 years ago

Figure 3: Total VAT population over the last 10 years to 2023 to 2024.

Financial Year	VAT Population
2014-15	2,128,080
2015-16	2,217,840
2016-17	2,308,580
2017-18	2,331,730
2018-19	2,352,250
2019-20	2,454,910
2020-21	2,481,330
2021-22	2,554,470
2022-23	2,392,790
2023-24	2,178,950

For the full dataset that accompanies Figure 3 go to Value Added Tax (VAT) tables 2023 to 2024.

4.2 Sector

Figure 4 illustrates the VAT population from the top 10 trade sectors for the financial year ending March 2024:

• the largest sector in the VAT population was Wholesale and Retail with 456,410 traders, 21% of the total VAT population

• the Construction sector (325,200 traders) and Professional, Scientific and Technical Activities sector (323,640 traders) were also large contributors to the VAT population

Figure 4: Contribution to the VAT population from the top 10 trade sectors for the financial year ending March 2024.

Sector	Number of Traders
Wholesale and Retail	456,410
Construction	325,210
Professional, Scientific and Technical Activities	323,640
Information and Communications	171,750
Administrative and Support Service Activities	139,480
Agriculture, Forestry and Fishing	126,870
Accommodation and Food Service Activities	124,030
Manufacturing	122,080
Real Estate Activities	107,180
Transportation and Storage	94,430

For the full dataset that accompanies Figure 4 go to Value Added Tax (VAT) tables 2023 to 2024.

Figure 5 illustrates the 10 sectors which saw the largest changes in VAT population during the financial year ending March 2024:

• the VAT population in the Wholesale and Retail sector fell by 61,550 traders (-12%), the largest year-on-year change in the number of traders

• the largest percentage change in the number of traders was seen in the Transportation and Storage sector whose VAT population decreased by 27,780 traders (-23%)

Figure 5: Year-on-year change in VAT population of the top 10 contributing sectors for the financial year ending March 2024.

Sector	Year on Year Change in VAT population
Accommodation and Food Service Activities	-61,550
Electricity, Gas, Steam and Air Conditioning Supply	-27,780
Professional, Scientific and Technical Activities	-26,530
Manufacturing	-24,290
Information and Communications	-19,730
Wholesale and Retail	-15,510
Arts, Entertainment and Recreation	-13,890
Public Administration and Defence; Compulsory Social Security	-11,190
Administrative and Support Service Activities	-5,530
Construction	-2,530

For the full dataset that accompanies Figure 5 go to Value Added Tax (VAT) tables 2023 to 2024.

4.3 Business type

Figure 6 illustrates the VAT population for the financial year ending March 2024 broken down by business type:

• the most common business type was incorporated companies which consisted of 1,660,210 traders (76% of the VAT population)
• the vast majority (98%) of traders were either incorporated companies, sole proprietors or partnerships

Figure 6: VAT population by business type for the financial year ending March 2024.

Business Type	Number of Traders
Incorporated company	1,660,210
Sole proprietor	293,960
Partnership	177,530
Non profit making body or mutual association (other than a corporate body)	41,890
Local authority	1,940
Public corporation or nationalised industry	1,860
Unknown	1,570

For the full dataset that accompanies Figure 6 go to Value Added Tax (VAT) tables 2023 to 2024.

4.4 Turnover band

Before financial year 2022 to 2023, traders with a negative turnover were previously classified as having an unknown turnover. For financial year 2022 to 2023 onwards, traders with a negative turnover are included in the newly labelled ‘Negative or £0’ turnover band. It is not feasible to implement this improvement to previous years. Therefore, historic figures are not directly comparable. Traders with a negative turnover accounted for just 0.2% of the total VAT population in 2022 to 2023.

Figure 7 illustrates the VAT population for the financial year ending March 2024 broken down by turnover band:

• the turnover band with the most traders was the £1 to threshold annual turnover band with 678,350 traders (31% of the VAT population)

• 41% of traders declared an annual turnover up to and including the VAT registration threshold (£85,000 in 2023 to 2024)

Figure 7: VAT population by annual turnover bands for the financial year ending March 2024.

Turnover Band	Number of Traders
£1 to threshold	678,350
> £150,000 to £300,000	334,470
> threshold to £150,000	305,320
> £1m to £10m	235,060
Negative or £0	216,500
> £300,000 to £500,000	184,080
> £500,000 to £1m	180,500
> £10m	44,680

For the full dataset that accompanies Figure 7 go to Value Added Tax (VAT) tables 2023 to 2024.

5. VAT liabilities

The net tax declared on VAT returns does not include:

• payments or repayments that are unrelated to the VAT return
• payments or repayments do not match the amount declared on the VAT return (for example where repayment is withheld by HMRC)

Therefore, the net tax declared on VAT returns is not the same as the payments and repayments made by a business. Net tax relates to Home VAT only.

5.1 Overview

Figure 8 illustrates the following changes in net Home VAT liability over the last 10 financial years:

• net Home VAT liability in 2023 to 2024 was £173 billion.

• net Home VAT liability has increased £17 billion (11%) since 2022 to 2023

• the year-on-year increases in net Home VAT liabilities have been larger since 2020 to 2021, in line with changes to Home VAT receipts

• net Home VAT liability has increased by £80 billion (86%) during the past 10 financial years

Figure 8: Net Home VAT liability over the last 10 years to 2023 to 2024.

Financial Year	Net Home VAT (£ billion)
2014-15	93.1
2015-16	97.2
2016-17	100.1
2017-18	102.9
2018-19	105.3
2019-20	109.1
2020-21	98.2
2021-22	140.7
2022-23	156.7
2023-24	173.4

For the full dataset that accompanies Figure 8 go to Value Added Tax (VAT) tables 2023 to 2024.

5.2 Sector

Figure 9 illustrates the net Home VAT liability from the top 10 trade sectors for the financial year ending March 2024:

• the largest contributor to the net Home VAT liability was Wholesale and Retail which contributed to 32% of net Home VAT liability (£55 billion)

• the Professional, Scientific and Technical Activities sector (£27 billion) and Manufacturing sector (£24 billion) were also large contributors to the net Home VAT liability

Figure 9: Contribution to net Home VAT liability from the top 10 trade sectors for the financial year ending March 2024.

Sector	Net Home VAT (£ billion)
Wholesale and Retail	55.5
Professional, Scientific and Technical Activities	27.4
Manufacturing	24.3
Information and Communications	19.4
Administrative and Support Service Activities	18.8
Accommodation and Food Service Activities	11.2
Construction	10.9
Electricity, Gas, Steam and Air Conditioning Supply	6.0
Real Estate Activities	4.2
Other Service Activities	3.6

For the full dataset that accompanies Figure 9 go to Value Added Tax (VAT) tables 2023 to 2024.

Figure 10 illustrates the 10 sectors which saw the largest changes in net Home VAT liability during the financial year ending March 2024:

• net Home VAT liability in the Wholesale and Retail sector increased by £6 billion (+12%), the largest year-on-year change. This was followed by the Construction sector which increased by £3 billion (+44%)

• the largest percentage change in Net Home VAT liability was seen in the Construction sector whose Net Home VAT Liability increased by £3 billion (+44%)

• whilst most sectors Net Home VAT liabilities have increased since 2022 to 2023, Public Administration and Defence and Transportation and Storage saw modest decreases in their Net Home VAT liabilities

Figure 10: Year-on-year actual change in Net Home VAT liability of the top 10 contributing sectors for the financial year ending March 2024.

Sector	Year on Year Change in Net Home VAT (£ billion)
Wholesale and Retail	5.8
Construction	3.3
Administrative and Support Service Activities	2.6
Professional, Scientific and Technical Activities	2.4
Information and Communications	1.7
Accommodation and Food Service Activities	1.4
Public Administration and Defence	-0.7
Manufacturing	0.6
Other Service Activities	0.6
Transportation and Storage	-0.5

Note: The comparison of the year-on-year changes for Net Home VAT has been impacted by the introduction of Postponed VAT Accounting for import VAT from January 2021.

For the full dataset that accompanies Figure 10 go to Value Added Tax (VAT) tables 2023 to 2024.

5.3 Business type

Figure 11 illustrates the net Home VAT liability for the financial year ending March 2024 broken down by business type:

• incorporated companies made the largest positive contribution of £174 billion to net Home VAT liability
• local authorities made the largest negative contribution of -£11 billion to net Home VAT liability

Figure 11: Net Home VAT liability by business type for the financial year ending March 2024.

Business Type	Net Home VAT (£ billion)
Incorporated company	174.1
Partnership	5.8
Sole proprietor	2.8
Non profit making body or mutual association other than a corporate body	2.4
Unknown	0.1
Public corporation or nationalised industry	-0.4
Local authority	-11.5

For the full dataset that accompanies Figure 11 go to Value Added Tax (VAT) tables 2023 to 2024.

5.4 Turnover band

Before financial year 2022 to 2023, traders with a negative turnover were previously classified as having an unknown turnover. For financial year 2022 to 2023 onwards, traders with a negative turnover are included in the newly labelled ‘Negative or £0’ turnover band. It is not feasible to implement this improvement to previous years. Therefore, historic figures are not directly comparable. Traders with a negative turnover accounted for just 0.2% of the total VAT population in 2022 to 2023.

Figure 12 illustrates the net Home VAT liability for the financial year ending March 2024 broken down by turnover band:

• traders with a turnover of greater than £10 million accounted for the largest amount of net Home VAT liability (£130 billion).

• traders with a turnover of up to and including the VAT registration threshold (£85,000 in 2023 to 2024) had a combined net Home VAT liability of -£1 billion.

Figure 12: Net Home VAT liability by annual turnover bands for the financial year ending March 2024.

Turnover Band	Net Home VAT (£ billion)
Negative or £0	-2.6
£1 to threshold	1.5
> threshold to £150,000	2.4
> £150,000 to £300,000	4.6
> £300,000 to £500,000	3.9
> £500,000 to £1m	6.2
> £1m to £10m	27.5
> £10m	130.0

For the full dataset that accompanies Figure 12 go to Value Added Tax (VAT) tables 2023 to 2024.

6. Contacts and User Engagement

The VAT annual statistics are produced by the Indirect Taxes, Customs and Co-ordination team as part of the Excise duties, VAT and other indirect tax statistics collection.

A consultation on the reduction and consolidation of HMRC statistics publications was held between 24 October 2022 and 16 January 2023 and the results have been published.

HMRC welcomes user engagement to improve the departments National and Official Statistics. You can contact statistics producers via our feedback avenues.

For statistical enquiries, contact: revenuemonitoring@hmrc.gov.uk

For media enquiries, see HMRC press office. Telephone: 03000 550 493