HMRC has published an updated Tax Information and Impact Note about VAT online registration and the removal of the threshold for non-UK established businesses.

The matter is relevant for businesses who wish to use online services to register for VAT or notify a variation of their registration details (such as a change of address or to deregister). Businesses without a UK establishment who make taxable supplies of goods or services in the UK will also be affected by the removal of the VAT registration threshold.

On 31 October 2012, HMRC introduced the online service for VAT registration, deregistration and variations of business details. From 1 December 2012, non-UK established businesses are required to register for VAT regardless of the value of taxable supplies they make in the UK. These businesses no longer benefit from the UK VAT registration threshold.

HMRC advise that the removal of the UK VAT registration threshold for non-UK established businesses brings the UK law in line with that of other Member States, following the Court of Justice of the European Union case on Schmelz C-97/09.