Value Added Tax

VAT registration ― voluntary

Produced by Tolley
  • 19 Jan 2022 07:03

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

  • VAT registration ― voluntary
  • When can a person register for VAT voluntarily?
  • VAT registration would result in VAT repayments
  • VAT registration would reduce VAT risks
  • All or most sales are to VAT registered customers
  • Perceptions of credibility
  • Practical points

VAT registration ― voluntary

This guidance note provides the following information regarding VAT registration on a voluntary basis:

  1. when it is possible

  2. reasons why it may be appropriate

  3. practical points to consider

For in-depth commentary on the legislation and case law concerning voluntary VAT registration, please refer to De Voil Indirect Tax Service V2.144–V2.146.

For guidance about the process of registering for VAT, please refer to the VAT registration procedure guidance note.

The Pre-incorporation, pre-registration and post-registration input tax guidance note includes guidance on the rules for claiming VAT on costs incurred prior to the date of VAT registration.

The Flowchart ― VAT registration ― compulsory or voluntary is intended to provide an overview of when UK VAT registration may be required on a compulsory basis or may be available on a voluntary basis. The flowchart does not, however, reflect all of the points covered in this guidance note and the VAT registration ― compulsory guidance note and it should be used in conjunction with both of these guidance notes.

When can a person register for VAT voluntarily?

The VAT registration ― compulsory guidance note explains when VAT registration is required on a compulsory basis. If VAT registration is not required on a compulsory basis, it is available on a voluntary basis if a person makes, or intends to may, any supplies that provide the person with an entitlement to claim VAT as input tax. For guidance on claiming VAT as input tax, please refer to the Claiming input tax guidance note.

The following categories of supplies

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