Commentary

V2.144 Entitlement to registration—taxable supplies made or to be made

Part V2 Registration – deregistration

V2.144 Entitlement to registration—taxable supplies made or to be made

V2.144 Entitlement to registration—taxable supplies made or to be made

A person who is not liable to be registered is eligible for registration if either:

  1.  

    •     he satisfies HMRC that he is carrying on a business, and that he intends to make taxable supplies in the course or furtherance of that business (ie he is an 'intending trader'1)

  2.  

    •     he satisfies HMRC that he is making taxable supplies2 (references to 'supplies' in this context means supplies in the course or furtherance of a business3, see Division V2.2).

The UK registration provisions are confined to persons who intend to make taxable supplies. A taxable supply is a supply of goods or services made in the UK other than an exempt supply4. It follows that a person who intends to make nothing but exempt supplies is unable to request registration under these provisions. The registration of such a person is invalid5. For exempt supplies, see Division V4.1. For the registration, in certain circumstances, of persons who neither make nor intend to make taxable supplies, see V2.146.

EU law and intending traders

As a matter of EU law, a person is a taxable person if he intends to carry out an economic activity6 and carries out preparatory acts attributable to the activity provided his declared intention to carry out the activity is supported by objective evidence. Preparatory acts can include acquiring the means for exploiting an asset and acquiring an asset (see, for example, Rompelman and Meseryside Cablevision7. Making an issue of shares and expenditure

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