VAT reg and de-reg

Question 1

REG-When is compulrosy

Answer 1

• Taxable supplies in last 12m; or
• Taxable supplier in next 30 days
• Exceed £79,000

Question 2

REG- Implications

Answer 2

• Will have to pay output VAT

- Will have to notify HMRC 30 days after £79,000 is exceeded.

Question 3

REG-Advantages (2)

Answer 3

• Recover input tax

- Avoid risk of missing registration date and penalites

Question 4

REG-Dis-ads (2)

Answer 4

• Extra admin burden

- Selling to the public who cannotr revoer VAT so his prices will be more expensive and he will be less competitive.

Question 5

DE-REG conditions

Answer 5

-When taxable supplies (o+std) will not exceed £77,000 in next 12m

Question 6

DE-REG implications

Answer 6

• She can agree a date with HMRC and will be liable for VAT on NCA and inventory
• There will be a VAT charge on NCA and inventory where input VAT was claimed.
• Waived if under £1,000
• Will have to re-register when taxable supplies exceed £79,000