VAT registration

A Company is required to register for VAT if a Company's turnover for the previous 12 months on a rolling basis is above £70,000 (20010/11) This is known as the VAT registration threshold.

The turnover must be a taxable supply of goods/services. If a Company's supply of goods or services fall into an exempt category then no VAT registration is necessary, for example, insurance, travel, financial services, healthcare.

A Company must also register for VAT if:

  • It believes that its business turnover may go over the £70,000 threshold in the next 30 days
  • It takes over a VAT registered business as a going concern.
  • It sells goods into the UK from another country in the EU and exceeds the 'distance selling threshold'.
  • It acquires goods from other countries in the EU totalling more than £70,000 in a year.
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