What is the VAT registration threshold?April 28, 2022
What is the VAT registration threshold?
|Circumstance||Threshold||What to do|
|Total taxable turnover||More than £85,000||Register for VAT|
|Bringing goods into Northern Ireland from the EU ('acquisitions')||More than £85,000||Register for VAT|
|Selling goods from Northern Ireland to consumers in the EU ('distance selling')||Total sales across the EU over £8,818||Register for VAT in EU countries|
|VAT registered taxable turnover||Less than £83,000||Deregister for VAT (optional)|
How does VAT work?
Can I register for VAT before I reach the VAT threshold?
Benefits of VAT registration
Drawbacks of VAT registration
VAT accounting scheme thresholds
Flat Rate Scheme
Cash Accounting Scheme
Annual Accounting Scheme
|Threshold to join scheme||Threshold to leave scheme|
|Flat Rate Scheme||£150,000 or less||More than £230,000|
|Cash Accounting Scheme||£1.35 million or less||More than £1.6 million|
|Annual Accounting Scheme||£1.35 million or less||More than £1.6 million|
When do I need to register for VAT?
I didn't realise I went over the VAT threshold. What now?
|From||VAT registration threshold||VAT deregistration threshold|
|1st April 2010||£70,000||£68,000|
|1st April 2011||£73,000||£71,000|
|1st April 2012||£77,000||£75,000|
|1st April 2013||£79,000||<£77,000|
|1st April 2014||£81,000||£79,000|
|1st April 2015||£82,000||£80,000|
|1st April 2016||£83,000||£81,000|
|1st April 2017 to present||£85,000||£83,000|
VAT registration exceptions
|If you registered...||The penalty rate will be...|
|No more than 9 months late||5%|
|More than 9 months but no more than 18 months late||10%|
|More than 18 months late||15%|