Commentary

V2.181 Registration of persons making acquisitions

Part V2 Registration – deregistration

V2.181 Registration of persons making acquisitions

Registration—acquisitions

V2.181 Registration of persons making acquisitions

As part of the arrangements for the introduction of the Single Market, supplies of goods between VAT registered persons in different EU member states were zero-rated from 1 January 1993, and VAT became due on the 'acquisitions' of these goods by the customer. This 'acquisition VAT' is accounted for by the customer on his VAT return. For the zero-rating of goods supplied to EU taxable persons, see V4.311 and for acquisitions of goods, see V3.361.

Purchases of goods in the UK by persons not registered for VAT from suppliers registered in another EU member state generally remain liable to VAT in that member state (although see V3.173 in relation to distance sales). However, certain businesses (ie those who do not have an existing VAT registration) are required to register in the UK and account for UK VAT once the value of their acquisitions from other EU member states exceeds certain limits1.

Persons liable to be registered in respect of

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