Introduction
Businesses in the UK (including Isle of Man) are required to register for VAT
-
If the value of their Taxable Turnover (standard rate, reduced rate and or zero rated supplies) in the preceding 12 months or less goes over the registration threshold of £90,000
-
If the value of their taxable turnover (standard rate, reduced rate and or zero rated supplies) is likely to exceed £90,000in the next 30 days
-
if the business is based outside the UK and supplies goods or services in the UK or are expected to in the next 30 days. (Threshold does not apply here)
-
If a businesses is being taking over a VAT registered business as a going concern
-
If you make distant sales into Northern Ireland and exceed the annual threshold.
Note: Businesses include Sole Traders, Partnerships, Limited Companies, Clubs, Associations.
What is Taxable Turnover
-
Standared Rated Sales of goods and services
-
Zero Rated Goods and Services
-
Reverse Charge Output VAT
-
Any Goods or Services you barter or part exchange
-
The value of any goods you have used for private use
-
Property services supplied (rent and service charges) where you have opted to tax the building.
What is not Taxable Turnover
-
Sales of capital items such as buildings , machinery, cars
-
Exempt supplies
Voluntary Registration
You can apply to HMRC for voluntarily registration if:
-
you are making taxable supplies where their value is under the £85,000 threshold. This will allow you to recover VAT expenses incurred.
-
You are intending to make taxable supplies in the near future
-Contains public sector information licensed under the Open Government Licence v3.0.