VAT
  • 01 Apr 2016

Thresholds

The compulsory VAT registration threshold will rise to £83,000 on 1 April 2016, and the deregistration threshold will increase from £80,000 to £81,000.

VAT evasion

The Government is taking action to tackle unfair competition from traders based overseas who sell their goods through online marketplaces in the UK. Such traders frequently fail to add VAT to their prices even though they are required to do so if the goods are held in the UK. This means the overseas traders can undercut UK traders who apply VAT correctly.

HMRC will be given the power to require an overseas trader to appoint a tax representative in the UK.

HMRC will also be able to inform online marketplaces of the traders who have not complied.

Businesses which provide warehouse facilities to overseas traders to store goods before they are sold in the UK, will be subject to additional regulation.

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