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HMRC internal manual

VAT Taxable Person Manual

HM Revenue & Customs
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Scope and legal basis of VAT: The requirement to be registered

Whether a person is required to be registered is usually dependent upon the level of that person’s taxable turnover; there are special provisions covering voluntary registration, group registration and the registration of intending traders. These issues are covered in VATREG. This book deals with one consideration which can determine whether a person is required to be registered: his or her employment status.

Employment status

There is specific provision in EU legislation for employees acting on behalf of their employers not to be considered as taxable persons. Employees are therefore not required to be registered and their activities are outside the scope of UK VAT.

VTAXPER32000, illustrated by the employment status diagram, reproduces the relevant EU and UK VAT law and provides guidance on how to decide whether a supply has been made by an employee acting on behalf of his or her employer.