I am aware of a Ltd company which turns over 1.5m and isn't VAT registered. I have asked how they have achieved this with no straight answer and I wondered of anyone might be able to help.
Rob Matthew
Replies (5)
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I'm with EL
They could be operating under TOMS.
The alternative is that they are not making any taxable UK supplies but are making taxable sales in France so they may well be VAT (or TVA as they call it) registered in France for a proportion of their sales.
Tour Operators Margin Scheme
I don't know if they need to be registered, but it sounds as though the Tour Operators Margin Scheme (TOMS) would apply. The registration threshold is determined by margins rather than turnover, so that probably explains it. Have a look here:
VAT
Hi, thanks for all your answers!
The company sell holidays in France from the UK.
Many thanks again and if anyone can provide any further comments i would be really grateful
Thanks
Rob
More details please
It is most likely the Ltd company only makes exempt supplies (insurance, finance, education, etc) and/or only makes very small levels of taxable sales.
Highly unlikely, but they may have forgotten to register for VAT and just haven't been visited by HMRC as yet - it is the entities responsilbity to register for VAT, not for HMRC to come and tell them - but they must have a real bad accountant not to notice the threshold has been exceeded.