Explanatory note

This Order, which comes into force on 1st April 2017, amends Schedules 1 and 3 to the Value Added Tax Act 1994 c.23 (“the Act”).

Persons who make taxable supplies or acquisitions from other Member States (“acquisitions”) must be registered for the purpose of the Act if the value of the taxable supplies or acquisitions that they make exceeds a prescribed value subject to an exception where the value of the taxable supplies in the next 12 months will be below a prescribed value. The values are prescribed in Schedule 1 and Schedule 3 to the Act respectively. This Order increases the prescribed registration values from £83,000 to £85,000 and in cases that fall within the exception, from £81,000 to £83,000.

Persons registered in relation to taxable supplies or acquisitions may not de-register unless the value of the taxable supplies or acquisitions that they make falls below a prescribed value. The values are also prescribed in Schedule 1 and Schedule 3 respectively to the Act. This Order increases the deregistration value for taxable supplies from £81,000 to £83,000 and the deregistration value for acquisitions from £83,000 to £85,000.

A Tax Information and Impact Note covering this instrument will be published on the HMRC website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.