Following a recent European Court of Justice Case, Schmez C 97/09, the Value Added Tax registration threshold for foreign businesses has been forced to be withdrawn by the UK. The change will be effective from the end of 2012.
According to this rule, the UK must now subject to provide VAT for all kinds of businesses like all other European Union member countries, if the country is offering taxable supplies. The major aspect behind this rule is that businesses will already be VAT or tax registered in their home countries and therefore, they will already be providing supplies within the EU above the UK’s limit. It is therefore, not appropriate to assume that there are no other taxable supplies.
