VAT registration and deregistration thresholds
The taxable turnover threshold, that determines whether businesses should be registered for VAT, has been increased from £70,000 to £73,000 from 1 April 2011. The taxable turnover threshold that determines whether businesses can apply for deregistration has been increased from £68,000 to £71,000 on the same date.
Businesses will be required to register for VAT if they meet either of the following two conditions:
- At the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £73,000; or
- At any time there are reasonable grounds for believing that the value of taxable supplies to be made in the next 30 days alone will exceed £73,000.
The registration and deregistration threshold for relevant acquisitions from other
EU Member States will also have been increased from £70,000 to £73,000.