A business is required to register for VAT if:
- Its total VAT taxable turnover over the past 12 months exceeds £90,000.
- It expects turnover to surpass the £90,000 VAT threshold within the next 30 days.
- It is a foreign business not based in the UK but supplies goods or services to the UK (or plans to within the next 30 days), regardless of VAT taxable turnover.
A VAT-registered business must charge VAT on qualifying sales and can typically reclaim VAT on eligible purchases.
Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, said:
‘We know that the majority of our customers want to get their tax right. We have listened to what businesses have said and the new tool is designed to help them understand VAT registration, including when they might be required to register.’
Info obtained here
