UK VAT registration threshold raised to £82,000 per annum 2015/16
In today’s Budget, it was announced that the UK VAT registration threshold is to be raised to £82,000 per annum from April 2015. The current threshold is £81,000.
The VAT registration threshold is the amount above which a business or individual providing taxable goods or services must start to charge and collect UK VAT. The UK operates a rolling registration threshold, meaning businesses must track their sales over the previous 12 months to determine if they have exceeded the threshold.
The UK has the highest VAT registration threshold in Europe. Most EU members have nil-€15,000 threshold. This can create problems for micro businesses supplying goods or services to companies in Europe and liable to charge local VAT. For example, the new 2015 B2C VAT on electronic services meant that micro businesses in the UK had to register in the UK for the first time to enable them to correctly charge EU VAT to consumers in other European countries.
The reregistration threshold was also increased from £79,000 to £80,000.
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