Commentary

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

Part V2 Registration – deregistration

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

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

UK law—voluntary registration for VAT

Persons who are not liable to be registered are eligible for registration if either they satisfy HMRC that they are:

  1.  

    •     carrying on a business, and that they intend to make taxable supplies in the course or furtherance of that business (ie they are an 'intending trader'1), or

  2.  

    •     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—voluntary registration for VAT

As it stood at IP completion day (ie 11pm on 31 December 2020), for the purposes of EU law, persons were taxable persons if they intended to carried out an economic activity6 and carried out preparatory acts attributable to the activity provided their declared intention to carry out the activity was supported by objective evidence. Preparatory acts could include acquiring the means for exploiting an asset and acquiring an asset (see, for example,

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