UK raises 2014/5 VAT registration threshold to £81,000
- European News
- 19 March 2014 | Richard Asquith
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.