Apply for an exception from registering for VAT

Question

Accepted Answer

When to apply

You鈥檒l normally need to register for VAT if you鈥檙e a sole trader or a business, and your total taxable turnover for the last 12 months goes over the VAT registration threshold.

However, you may not have to register if, at the end of any month, both of the following apply:聽

your taxable supplies went over the registration threshold in the last 12 months聽
you can show that your taxable supplies will not go over the deregistration threshold in the next 12 months

This is called exception from registration.聽You鈥檒l need to apply to HMRC to make this exception official.

This is not the same thing as exemption from registration for VAT. Read section 3.11 of VAT notice 700/1 to find out when you might be exempt from registration.

How to apply

Contact聽HMRC聽by telephone to request聽form VAT1.
We鈥檒l ask you why you need the form. Tell us that you want to apply for exception from registering for VAT.
We鈥檒l send you form VAT1 and form VAT5EXC. You鈥檒l need to complete both these forms and return them to us to apply for exception.

After you鈥檝e applied

Once we get your application, we鈥檒l write to you within 40 working days. Our letter will tell you whether we鈥檝e approved your application or not.

If we approve your application for exception

We will not register you for VAT. This does not mean that you will never have to register.

You must keep checking the value of all your taxable supplies every month, to see whether you鈥檝e gone over the registration threshold. If you do, you must either:

register for VAT
apply for exception again

If we refuse your application for exception

If we refuse your application, our letter will explain why.

We鈥檒l use the information you provided on form VAT1 to register you for VAT. You鈥檒l need to account for VAT from the date you were liable.

188体育