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HMRC internal manual

VAT Registration

Basic principles of registration: meaning of taxable turnover

Taxable turnover is the total value of taxable supplies made by a person in the course or furtherance of business, excluding VAT (VAT Act 1994, section 19).

This includes:

  • The value of all standard rated, reduced rate and zero rated supplies of goods and services. This is normally the total amount, including profit, but excluding VAT, which suppliers charge to their customers.
  • The deemed value of reverse charges for imported services. See VATPOSS14000 under the VAT Act 1994 Section 8. (External users can access this guidance at
  • In certain circumstances, the value of taxable self-supplies (that is, goods or services prescribed by Treasury Order which are acquired or produced and used solely within a business) must be included).

Subject to the following subsections, the value of a trader’s taxable turnover governs both their liability to be registered and their eligibility to seek cancellation of registration.