Commentary

700/1/20 Who should register for VAT

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

700/1/20 Who should register for VAT

Part V8 HMRC Notices | Commentary

700/1/20
Who should register for VAT

October 2020

This notice cancels and replaces Notice 700/1 (October 2019).

1 Introduction

Main narrative treatment—Division V2.1.

1.1 What this notice is about

This notice tells you when you must registers for VAT and how to do it.

1.2 Changes in this edition

This notice has been amended to reflect changes to the VAT rules for supplies of digital services and the eligibility for non-UK or non-EU businesses to use the VAT Mini One Stop Shop (VAT MOSS). These changes apply from 1 January 2019.

1.3 Who should read this notice

You should read this notice if you

  1.  

    •     make business supplies of goods or services in the UK regardless of where you live, or where your business is established

  2.  

    •     acquire goods into the UK from the EU

  3.  

    •     sell certain assets.

1.4 Force of law

Section 16 contains images of a number of VAT forms which carry the force of law under the VAT Regulations 1995 regs 5 and 10.

2 Basic principles

2.1 VAT: an introduction

VAT is a tax businesses have to charge when they make business supplies (that is, they sell goods or services) in the United Kingdom (UK) or Isle of Man.

Examples of business supplies include:

  1.  

    •     selling new and used goods, including hire purchase;

  2.  

    •     providing a service, for example, hairdressing and decorating;

  3.  

    •     charging an admission price to go into buildings;

  4.  

    •     self-employed people providing supplies, for example, some salesmen and subcontractors.

VAT is also charged on goods and:

  1.  

    •     some services, which are imported from places outside the EU

  2.  

    •     services

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