UK raises VAT registration threshold to £83,000

Thu 17th Mar 2016

The UK’s Chancellor, George Osborne, today announced that the UK VAT registration threshold would increase from £82,000 to £83,000 per annum from 1 April.

This will lift approximately 2,000 small businesses out of the VAT net.  The reregistration threshold will be set at £81,000 per annum.

The threshold applies to UK-resident businesses providing taxable supplies in the UK, although it can also include UK acquisitions (‘imports’ from other EU member states).  Businesses can elect to register voluntarily.

Non-resident businesses, either from EU or non-EU countries, there is no VAT registration threshold.  For EU sellers of B2C goods (e.g. via the internet), there is a distance selling VAT registration threshold into the UK of £70,000 per annum.