Commentary

V2.138 Liability to registration—local authorities making taxable supplies

Part V2 Registration – deregistration

V2.138 Liability to registration—local authorities making taxable supplies

V2.138 Liability to registration—local authorities making taxable supplies

A local authority which makes taxable supplies is liable to registration whatever the value of its supplies, and accordingly, for the purposes of registration, where the value of taxable supplies does not exceed the prescribed limit, VATA 1994, Sch 1, applies as if the value did exceed the limit. However, for ease of administration HMRC's practice is to only enforce this where it is anticipated that output tax will reach £1,000 a year1.

HMRC states2 that supplies of services by one local authority to another local authority

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