VAT Registration & Deregistration Thresholds

VAT Registration & Deregistration Thresholds

Thresholds from January 2021  
Registration threshold £85,000
Registration for distance selling into Northern Ireland £70,000
Registration for bringing goods into Northern Ireland from the EU £85,000
De-registration threshold £83,000


Registration threshold

VAT registration is compulsory if any of the following apply:

  • Taxable turnover for VAT purposes in the previous 12 months exceeds the threshold.

  • VAT taxable turnover may go over the threshold in the next 30 days alone.

  • When a VAT-registered business is taken over as a going concern.


Deregistration threshold

If the VAT taxable turnover for the year is less than or equal to the deregistration threshold or it is expected to fall below it in the next 12 months, a business has the option of deregistering if it wants to.

VAT Accounting Scheme thresholds

  To join the scheme To leave the scheme
Flat Rate Scheme £150,000 or less More than £230,000
Cash Accounting Scheme £1,35 million or less More than £1,6 million
Annual Accounting Scheme £1,35 million or less More than £1,6 million

 

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