Commentary

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

Part V2 Registration – deregistration

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

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

Liability to VAT registration under the historical turnover rule

Persons who makes taxable supplies (see V2.134) but are not registered becomes liable to registration at the end of any month if the value of their 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.)

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. Persons who are not UK-established but who makes taxable supplies are, from that date, required to register under VATA 1994, Sch 1A regardless of the level of their 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.

Persons will be registered (whether or not they notify HMRC at the correct time) from the end of the month following the month at the end of which they became liable to registration or from an earlier date that may be agreed between them and HMRC4. Therefore persons who become liable to registration at the end of August will be registered from 1 October5. However, if they are also liable to registration at

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