VAT (Value Added Tax) is a tax which is charged on most goods and services provided by VAT registered businesses. When VAT registered businesses are charged VAT on the goods and services they buy then this can generally be reclaimed. VAT registered business are required to complete a VAT return (usually every quarter). The VAT return takes into consideration all of the VAT the business has collected from sales and all of the VAT the business has spent on purchases and expenses. The difference is then paid or reclaimed from HMRC.