Commentary

V2.135 Liability to registration at the end of any month (historical turnover rule)

Part V2 Registration – deregistration

V2.135 Liability to registration at the end of any month (historical turnover rule)

V2.135 Liability to registration at the end of any month (historical turnover rule)

Liability to registration under the historical turnover rule

A person who makes taxable supplies (see V2.134) but is not registered becomes liable to registration at the end of any month if the value of his taxable supplies in the period of one year then ending (ie the immediately preceding 12 months) has exceeded the prescribed registration limit (the current prescribed limit is £85,0001, see V2.134 for future changes and see 'UK taxable supplies—registration' in Tax tables and checklists for past prescribed limits).

With effect from 1 December 2012, registration under this provision only applies to a 'UK-established' person, ie a person who has a business establishment, or some other fixed establishment, in the UK2. A person who is not UK-established but who makes taxable supplies is, from that date, required to register under VATA 1994, Sch 1A reg regardless of the level of his taxable turnover, see V2.157.

It is not necessary for a person to have been trading for a full year before a liability to register arises3.

A person will be registered (whether or not he notifies HMRC at the correct time) with effect from the end of the month following the month at the end of which he became liable to registration or from such earlier date as may be mutually agreed between him and HMRC4. Thus a person who becomes liable to registration at the end of August will be registered with effect from 1

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