Are Goods or Services Rendered to EU VAT Registered Companies Subject to VAT?

The UK VAT legislation requires you to register with HMRC for VAT in the following circumstances: If you make taxable supplies the UK and at the end of every month if the taxable supplies made in the last 12 months or less, when added up, exceed the registration threshold (currently £70,000) you need to register for VAT. However if you expect the value of the taxable supplies in the next 12 months not to exceed the deregistration threshold (currently £68,000) then you don't need to register. But you must Register for VAT if, at any time, you expect the value of your taxable supplies in the next 30 day period alone to go over the registration threshold. Taxable supplies are defined to mean supplies made in the UK that are not exempt from VAT and include supplies that are zero-rated.

Distance sale: If you are a VAT-registered business in an EU country and sell goods (not services) or arrange for their delivery (e.g. send them by post or by courier) to a customer based in the UK or Isle of Man who isn't registered for VAT, you are distance selling. Distance selling only involves goods, not services. And it only takes place when someone registered for VAT in an EU country sells and delivers goods to someone in the UK who isn't registered - and doesn't have to be registered - for VAT. You'll need to register for UK VAT if the value of your distance sales into the UK starting 1 January goes over the distance selling threshold (currently £70,000).

Relevant acquisitions: If you have made relevant acquisitions in the UK from other EU countries and at the end of any month, the total value of your acquisitions of goods (not services) from all other EU states in the year starting from 1 January has gone over the registration threshold (currently £70,000) or it is reasonable to assume that the value of such acquisitions in the next 30-day period alone would be over the registration threshold you must register for VAT. Relevant acquisitions are goods (not services) brought to the UK from a VAT Registered supplier in another EU country.

Relevant supplies: You must register for VAT if you make any relevant supplies in the UK or at any time you have reasonable grounds to believe that you will make relevant supplies within the next 30 days. Relevant supplies are taxable supplies of goods made in the UK on which a person (or his predecessor) has recovered VAT paid on their purchase or on anything incorporated in them.

Taking over a business as a going concern: If you take over a businesses a going concern from an owner who was, or was required to be, VAT registered, you must register for VAT if the total value of your taxable supplies together with the taxable supplies made by the business being taken, when added together, exceed the VAT registration threshold (currently £70,000). Taxable supplies made in the last 12 months to the date of take over only need to be considered. Registration is not required if you qualify for exemption from registration. You qualify for exemption if the taxable or relevant supplies that you make are zero-rated.