I'd be grateful for any advice on this one. Client makes supplies which are 100% outside the scope of UK VAT. Is there any barrier to voluntary registration in these circumstances?
Thanks
Replies (7)
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Why?
If he isn't making taxable supplies, he can't recover any VAT, what would be the benefit?
I think there has to be an intention to make taxable supplies ..
to get past the voluntary registration rules.
There are two restrictions
To register in these circumstances, the person must make or (carry on a business and) intend to make supplies that would be taxable if they were supplied in the UK, and the person must have his usual place of residence or a business establishment in the UK. Paras 10(1) to 10(4) of Sch 1 VATA 1994.
Harsh Response
Yes I concur - thanks Steve.
The other two responses are somewhat wide of the mark
That's a bit harsh. Given the limited information they were provided with, I think they made quite reasonable assumptions. As you apparently knew the answer already, I would have thought that you would have known what additional information would have helped them to understand your situation better.
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If I "knew the answer already" I would scarcely be wasting everyone's time by asking such a question.
Yes, that was what confused me.