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To VAT or Not to VAT? That is the question….

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Juan Carlos Venegas – Tax Consultant

To VAT or not to VAT – that is the question!

When should you register for VAT? Tax Consultant Juan Carlos works with clients both in the UK and in Spain, and here tries to clear up some of the confusion that new businesses can have over whether they need to register or not…

“You can register voluntarily because you may be interested in recovering the input VAT you have been charged on your purchases.

However, compulsory registration is due if your taxable supplies exceeds the annual registration threshold, which is currently £61,000.

A person will have to apply for registration if:

at the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £61,000; or

at any time there are reasonable grounds for believing that the value of the taxable supplies to be made in the next 30 days alone will exceed £61,000.

If at the end of any month, a person’s taxable turnover in the past 12 months or less exceeds £61,000 but HM Revenue and Customs is satisfied that it will not exceed £59,000 in the next 12 months, that person will not have to be registered.

You will be required to register for VAT if at the end of any calendar month, the value of your taxable supplies in the last 12 months exceeds £61,000.

If you have exceeded the limit then you must notify Revenue & Customs of your requirement to be registred by completing form VAT 1 and submitting it within 30 days of the month that you exceeded the limit.

The registration will be effective from the first day of the second month following the end of the month the £61,000 was exceeded. Therefore, you must charge VAT from that date.

If you need any further information or help, please contact me, Juan Carlos Venegas, at

© Certain Shops Ltd 2006 All Rights Reserved

All text is copyright © of the author and Certain Shops Ltd. Logos are copyright © their respective owners.

The information and opinions in contributions to this newsletter and printed on the Certain Shops web site in no way reflects the opinions of Certain Shops Ltd.

Certain Shops Ltd. 72 Medway Drive Forest Row E Sussex RH18 5NX Tel: 01342 824871 textphone 18001 01342 824871 Registered in England & Wales Company no. 5685386 VAT no. 880175810 Registered office North Park Lodge South St East Hoathly Lewes E Sussex BN8

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