Overview ― registering for VAT

By Tolley
VAT_tax_img6

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Overview ― registering for VAT
  • Persons who are entitled to register for VAT
  • Who cannot VAT register
  • Entity to be registered
  • Making taxable supplies in the UK
  • VAT registration threshold temporarily exceeded
  • Compulsory VAT registration
  • Voluntary registration
  • Artificial separation of business activities (disaggregation)
  • Consequences of registering for VAT

This guidance note provides an overview regarding when the business should register for UK VAT. This note should be read in conjunction with the VAT registration procedure and VAT registration ― artificial separation of business activities guidance notes.

 

This guidance note provides an overview regarding when the business should register for UK VAT. This note should be read in conjunction with the VAT registration procedure and VAT registration ― artificial separation of business activities guidance notes. See also Flowchart ― when must or can a business VAT register?.

Persons who are entitled to register for VAT

The following organisations can VAT register if they make relevant supplies:

  • sole proprietor (individual)
  • partnership (including a limited liability partnership)
  • corporate body (including the representative member of a VAT group)
  • club
  • association
  • charity
  • other types of organisations or groups of people acting together, such as educational or health institutions, organisers of exhibitions / conferences, etc
  • local authorities, government departments, the Crown
  • overseas businesses making taxable supplies in the UK
  • branches and representative offices of overseas businesses
  • racehorse owners

VATA 1994, Schs 1, 2, 3A; 2006/112/EC , Article 9(1); VATREG02000

Who cannot VAT register

The following cannot VAT register:

  • organisations that only make exempt supplies. Please see the Overview ― items that are exempt from VAT guidance note for more information
  • organisations or persons who are not deemed to be carrying on a business from a VAT perspective. HMRC defines a business as a ‘continuing activity involving getting paid for providing goods or services in money or another form of payment in-kind or barter’. To constitute a business, it is necessary for these activities to have a degree of frequency and scale, and be continued over a period of time. It should be noted that even if the activities undertaken have some

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