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UK raises 2014/5 VAT registration threshold to £81,000

  • Mar 18, 2014 | Richard Asquith

UK raises 2014/5 VAT registration threshold to £81,000

The UK Chancellor, George Osborne, announced today the UK VAT registration threshold will rise from £79,000 to £81,000 from April 2014.

This represents the level of annual sales a UK company or sole trader can make before they must register for VAT, and charge UK VAT at 20% on taxable supplies of goods or services.  The deregistration threshold has also been raised from £77,000 to £79,000 per annum.

Foreign companies providing VAT supplies in UK

Companies that are UK non-resident still face nil VAT registration threshold if they are required to VAT register as a non-resident trader because of their UK activities (e.g. holding stock in a warehouse for re-sale to local customers).

The non-resident UK VAT threshold used to £70,000, but was reduced to nil in 2012 following an intervention by the European Commission.  This basis for a nil registration for non-residents is that they should already by VAT registered in their home country, and therefore over their local VAT registration threshold.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.