Review ― VAT registration options and considerations

Produced by Tolley

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Review ― VAT registration options and considerations

Review ― VAT registration options and considerations

The following checklist can assist with working out what options are available to a business that needs to or wishes to register for VAT. It also provides details of other issues that should be considered when registering certain types of businesses for VAT.

This document could be used in conjunction with the Flowchart ― when must or can a business VAT register? in order to cover all aspects and options when registering for VAT.

QuestionActionFurther considerations / points to rememberRelevant guidance note and De Voil reference
Can a business that either makes no supplies or has yet to make supplies register for VAT?Check the status of the business, the types of transactions it makes, or intends to make, and where these transactions will take place.
Is it a business that has started up and incur costs but has yet to make any taxable supplies?
Is the business a representative office of an overseas entity that will not make taxable supplies in the UK?
If the business has just started up and intends to make taxable supplies at some point in the future, it can register for VAT as an intending trader.
Care needs to be taken to time the effective date of registration so that the maximum amount of input tax can be recovered as there is a deadline for recovering input tax on pre-registration / pre-incorporation expenses.
If the entity is a representative office then it can voluntarily register for VAT in order to claim VAT back on its costs if any supplies made would have been taxable supplies had they been made in the UK
See the Overview ― registering for VAT, VAT registration procedure and Pre-incorporation, pre-registration and post-registration input tax guidance notes.
See also De Voil Indirect Tax Service V3.431
What supplies are made by the business?Review the types of supply made to ascertain whether they are standard-rated,

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