The VAT registration threshold for businesses which are not established in the UK is removed from 1 December 2012.

Since that date, non-established taxable persons (NETPs) will not be able to benefit from the UK VAT registration threshold. They will be required to register for UK VAT when they make their first supply of goods or services here regardless of the value. Any NTEPs already making supplies here will be required to register for UK VAT with effect from 1 December 2012. NETPs include, for example, non-UK traders at farmers’ markets or Irish service suppliers working across the land border.

This change in legislation follows on from a decision (Schmelz C-97/09) in the European Court of Justice which confirmed that only businesses established in a Member State can benefit from its domestic VAT registration threshold.

From 1 December 2012, any non-established business which makes or intends to make taxable supplies in the next 30 days has 30 days from the date it formed that intention to notify HMRC that it is required to register for VAT. Businesses which became required to register in the UK on 1 December 2012 will have to notify HMRC of that fact by 30 December 2012.

More information on the change is in the brief which is reproduced on here.