Spring Budget 2017 – VAT registration and deregistration thresholds
The taxable turnover threshold, that determines whether businesses should be registered for VAT, will increase from £83,000 to £85,000 from 1 April 2017. The taxable turnover threshold that determines whether businesses can apply for deregistration will be increased from £81,000 to £83,000 on the same date.
Businesses are 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 £85,000; 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 £85,000.
The registration and deregistration threshold for relevant acquisitions from other EU Member States will also be increased from £83,000 to £85,000.