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HMRC internal manual

Partnership Manual

From
HM Revenue & Customs
Updated
, see all updates

Indirect, capital and transfer taxes and other tax obligations: VAT and partnerships: Registration and liability to VAT

The partnership will be required to be registered for VAT purposes if the business turnover reaches the required threshold for VAT. It is worth noting the difference between liability to VAT and direct tax (income tax or corporation tax). Unlike for direct tax purposes, there are no ‘look-through’ provisions in the VAT regime and it is the partnership itself which is the taxable person, not the partners. However, the partners have joint and several liability for any VAT debts of the partnership unless they have limited liability.