Commentary

V2.103 Registration of persons not businesses

Part V2 Registration – deregistration

V2.103 Registration of persons not businesses

V2.103 Registration of persons not businesses

It has been firmly established that it is 'persons' (as defined at V2.101) who are required to register for the purposes of VAT, and not the business or businesses which they carry on. Cases confirming this principle include Glassborow1 and ICAN Finance2. The CJEU has held in Galin Kostov that 'Article 9(1) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax is to be interpreted as meaning that a natural person who is already a taxable person for value added tax purposes in respect of his activities as a self-employed bailiff must be regarded as a “taxable person” in respect of any other economic activity carried out occasionally, provided that that activity constitutes an activity within the meaning of the second subparagraph of Article 9(1) of Directive 2006/112.'3 Two consequences follow from this principle:

  1.  

    •     any one person is entitled to only one registration unless the legislation allows otherwise

  2.  

    •     a person's registration covers all its business activities, however diverse they may be

Entitlement to only one VAT registration

Any one person is entitled to only one registration unless the legislation allows otherwise. Thus, if HMRC erroneously grants different registrations to the same person, it has a right to cancel all but one

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