The registration threshold for VAT in the UK is to increase to GBP 81.000 from April 2014. An enterprise or sole trader must register for VAT when sales reach this annual level. Following registration a trader must charge VAT on sales and pay this over to the government at regular intervals but can offset the VAT on purchases and overhead expenses. Business below this annual sales level can register voluntarily if this is of benefit to them.
This VAT registration threshold does not apply to non-resident enterprises who must pay VAT on all sales if they are required to register because of their UK business activities. These non-residents would normally be registered for VAT in their home country and would therefore be above their local VAT registration threshold.
