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HMRC internal manual

VAT Registration

Taxable supplies: previous period of registration

VAT Act 1994, schedule 1, paragraph 1(4) requires that, when determining a person’s taxable turnover to establish a liability to register for VAT, any turnover from a period of previous registration is normally to be excluded.

This means that, once deregistered, a person continuing to trade must still refer back to their previous year’s turnover at the end of every month. They can, however, disregard any taxable turnover from a previous period of registration.

As a person who was previously registered for more than a year can disregard all of that year, this will only have an impact, in practice, on a person who was registered for a period of less than a year.

Such persons will have to include any turnover for the part of the year prior to the period of registration when calculating any future liability to be registered.