Customs & Excise have been introducing
simpler notices through their website.
They cover such subjects as the Flat
Rate Scheme, Cash Accounting, etc. In April there was one addressing
the issue of Registration for VAT. I have to say that it was
over-simplified, and left major gaps.
My concern is that small businesses
may refer to these, and not be aware of the wider issues. There are
three main areas of registration (although the leaflet only really
mentions two of them);
in the UK in respect of supplies of goods or services. The current
registration limit is £58,000, although businesses with lower turnover
may register voluntarily.
Registration in the UK in respect of
received services (Schedule 5 services), or in respect of goods
purchased from other EC Member States (acquisitions). The registration
limit for these is also £58,000.
Registration in another EU Member
State in respect of goods or services supplied there. This is a
growing issue, and there can be a significant cost in registering
elsewhere. In one case, I act for a Client registered in Switzerland
(non-EU) in respect of services delivered there. In general,
everything will attract VAT (unless exempted in some way) and
therefore a business is likely to be registered somewhere.
The above is of course pretty basic,
but it does highlight the three areas to be aware of.