HMRC has published VAT statistics for 2022 to 2023. This is an overview of VAT statistics, covering receipts information and the characteristics of the VAT trader population in the UK.
The Headlines
- total VAT receipts in the financial year 2022-23 increased by 1% to £160 billion compared to £158 billion in 2021-22.
- during 2022-23, the VAT population was 2,392,790. There were 2,464,109 live traders as at March 2023, with 277,441 new registrations and 397,675 deregistrations in-year.
- total net Home VAT liability in 2022-23 was £156.76 billion.
- the Wholesale and Retail sector was the largest contributor to net Home VAT liability (32%) with a total of £50 billion.
- 75% of total net Home VAT liability (£117 billion) was paid by traders with an annual turnover of greater than £10 million.
Receipts dropped significantly between March 2020 and June 2020 due to the VAT payment deferment policy. Further reductions in receipts across the April 2020 to March 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.