Commentary

V7.130 VAT registration—introduction

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.130 VAT registration—introduction

Part V7 Tax planning | Commentary

Registration

V7.130 VAT registration—introduction

A business (defined in the law as a 'taxable person') needs to be registered for VAT in the UK if the value of its taxable supplies in the last 12 months has exceeded the VAT registration limit – or it expects the value of such supplies to exceed the limit in the next 30 days.

Since 1 December 2012 overseas businesses making taxable supplies in the UK have not benefited from the UK VAT registration threshold. In most cases they are required to register for VAT in the UK unless their customers are required to account for the VAT due via the reverse charge. An exception is that VAT registration will not be required if HMRC is satisfied that all of the taxable supplies qualify for zero-rating. This change was included in FA 2012, which added Sch 1A to VATA 1994.

The VAT registration threshold was increased to £85,000 on 1 April 2017 and, following an

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