Commentary

V7.139 VAT registration—exemptions and exceptions

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.139 VAT registration—exemptions and exceptions

Part V7 Tax planning | Commentary

V7.139 VAT registration—exemptions and exceptions

In most cases, a business that exceeds the VAT registration limits must register for VAT in accordance with the rules mentioned earlier.

However, there is scope for a business to request exemption from registration if it can satisfy HMRC that:

  1.  

    •     the business is wholly making zero-rated supplies and would therefore always be a repayment trader if it registered for VAT, or

  2.  

    •     the business mainly makes zero-rated supplies and even though some supplies are standard rated or reduced rated, the business would still be in a net repayment position, ie input tax exceeds output tax on a regular basis, or

  3.  

    •     although the business has exceeded the compulsory registration limits, this situation was

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