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HMRC internal manual

VAT Registration

From
HM Revenue & Customs
Updated
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Exemption from registration: changes in circumstance which may affect exemption

Where a person who has been granted exemption changes the nature of their business or the ratio of their standard-rated and zero-rated supplies, they are required to notify the Commissioners as follows.

If there is a material change in the nature of the supplies the person must notify us
  • within 30 days of the date it occurred, or
  • if a particular date cannot be identified, within 30 days of the end of the quarter in which the change happened.       
           
      If there is a material alteration in the proportion of taxable supplies the person must notify us within 30 days of the end of the quarter in which the proportion changed.  

References to a ‘quarter’ above should be taken to mean any three consecutive months.

Any person granted exemption who fails to notify any such change is liable to a penalty.