Commentary

V7.131 VAT registration—compulsory registration

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.131 VAT registration—compulsory registration

Part V7 Tax planning | Commentary

V7.131 VAT registration—compulsory registration

Turnover limits, EU acquisitions, services received from abroad

As explained above, there are two main situations when a business needs to be VAT registered on a compulsory basis – if the annual turnover threshold has been exceeded or if it is expected that the annual limit will be exceeded in the next 30 days. In effect, the latter rule means that any large business that has significant trading income will, more than likely, need to be VAT registered from its first day of trading.

However, there are four other situations when a business will have to register:

  1.  

    •     if the value of its 'acquisitions' (ie the value of goods bought from other EU countries) exceeds certain limits. The rules state that if the value of acquisitions made by a business at the end of any month, in the period beginning with 1 January in that year, has exceeded the annual UK VAT registration threshold

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