At first glance, you expect your turnover to exceed the threshold, so you must register for VAT.Thanks for this helpful thread. We are a small co-op start up with very low sales income from our digital services (music streaming) for a few years now, and are still a way off the trading threshold for VAT on consumer sales. We have also had grant income until recently, and may get an exceptional payment from a third party for the use of our infrastructure. I do not think the grant income is treated as trading income for the VAT threshold. However, will the exceptional 'B2B' payment count towards the VAT threshold for our normal 'B2C' trading? If it does, it means we have to register and put VAT collection in 'early' on our digital b2c sales channel, which is something we have to do one day, but costly for us right now.
Ah thanks @cremeegg. I thought it was unlikely. Perhaps the best we can do is to time the special income transaction and our effective registration date for the end of the year so that we have more time to make the necessary changes to systems?At first glance, you expect your turnover to exceed the threshold, so you must register for VAT.
Looking again, it is only due to a one off, non standard transaction that you will exceed the threshold, can you therefore not register. I don't think so.
You may be able to get professional advice that would be familiar with similar cases that would support your not registering, but probably not.
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