Value Added Tax

VAT registration ― compulsory

Produced by Tolley
  • 22 Dec 2021 18:46

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

  • VAT registration ― compulsory
  • When may VAT registration be required on a compulsory basis?
  • Registration as a result of taxable supplies by a person established in the UK
  • Monitoring the value of taxable supplies
  • The backward look (historic test) and the forward look (future test) are two distinct and separate tests
  • The transfer of a business as a going concern
  • The possibility of exception or exemption from registration
  • Registration as a result of relevant acquisitions of goods in Northern Ireland
  • Registration as a result of taxable supplies by a person not established in the UK
  • Registration as a result of distance sales of goods to customers in Northern Ireland
  • More...

VAT registration ― compulsory

This guidance note provides information relating to when a person is required to register for VAT on a compulsory basis. The VAT registration ― voluntary guidance note provides information relating to when a person is entitled to register for VAT on a voluntary basis. The VAT group and divisional registration ― overview guidance note provides information on VAT group and divisional registration. For detailed commentary on registration and deregistration, please refer to De Voil Indirect Tax Service Division V2.1.

When may VAT registration be required on a compulsory basis?

HMRC can issue an assessment for underpaid VAT covering a period of up to 20 years to a taxable person that has either not registered for VAT at all or not registered for VAT on time. This means that monitoring when and whether a compulsory registration requirement arises is an integral part of good governance.

VAT registration may be required on a compulsory basis as a result of:

  1. taxable supplies by a person established in the UK

  2. taxable supplies by a person not established in the UK

  3. distance sales of goods to customers in Northern Ireland

  4. supplies of goods which the supplier, or a predecessor, has claimed, or is intending to claim, a repayment of VAT

VATA 1994, Schs 1–3A

The activities for which registration is required as a result of supplies of goods which the supplier, or a predecessor, has claimed, or is intending to claim, a repayment of VAT, have largely ceased. For commentary in relation to this point,

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