When Does VAT Registration Become Mandatory?

If the sales made by your company exceeds the VAT limit, then you must register. There are fines and penalties available to HM Customs and Excise should a registration application not be made at the correct time.

The rules regarding mandatory registration state that:

• If sales which your company has made in any twelve month period exceed £58,000
•  If you anticipate that sales made by your company will be more than £58,000 in the next month.
• Completion of the form VAT 1 is the primary mechanism most companies use to register. On reaching the threshold the completed and signed form must be returned to Customs and Excise. They should receive it within a month or penalties could be imposed