Many licensees fall in to the trap of thinking that they do not need to register for VAT until they reach the turnover criteria….
If you are taking / have taken over the business from someone else you must look carefully at the taxable turnover of the business under the last owner to decide whether you need to register. It does not matter whether the last owner was registered or not. If the business was trading at a level above the limit you will need to register! Your date of registration will be the day you take over the business.

Basically if the business is being / was transferred as a going concern then there is a high probability that the turnover will have exceeded £55,000 (from 25/4/2002) that equates to takings of omly £1,058 per week.

YOU WILL NEED TO REGISTER….

If in doubt seek advice

The alternative could mean paying the VAT man outstanding VAT from the day you took over the business !!! - Could your business survive that sort of blow ?

Taxable supplies

1. Value of taxable supplies at the zero rate and all positive rates are included
   
2. A person is liable to register if there are reasonable grounds for believing that the value of his taxable
   supplies in the period of 30 days then beginning will exceed this limit.
   

(Value Added Tax Regulations 1995 (SI 1995/2518) pt. III as amended)

VAT invoices generally where supplied to a person who is also in the UK

1. An identifying number
   
2. The time of supply
   
3. The date of issue of the document
   
4. The name, address and registration number of the supplier
   
5. The name and address of the person to whom the goods or services are supplied
6. The type of supply by reference to the following categories:
   
   • A supply by sale
     
   • A supply on hire purchase or any similar transaction
     
   • A supply by loan
     
   • A supply by way of exchange
     
   • A supply on hire, lease or rental
     
   • A supply of goods made from customers materials
     
   • A supply by sale on commission
     
   • A supply on sale or return or similar terms, or
     
   • Any other type of supply which the commissioners may at any time by notice specify
7. A description sufficient to identify the goods or services supplied
   
8. For each description, the quantity of the goods or the extent of the services, the rate of VAT and the amount payable, excluding VAT, expressed in sterling
   
9. The gross total amount payable, excluding VAT, expressed in sterling
   
10. The rate of any cash discount offered
    
11. Each rate of VAT chargeable and the amount of VAT chargeable, expressed in sterling, at each such rate
    
12. The total amount of VAT chargeable, expressed in sterling
    

Retailers' Invoices

If the supplier sells directly to the public, he is only required to issue a VAT invoice if the customer requests it. Furthermore, if he supply is for £100 (before 9 April 1991, £50) or less, including VAT, a less detailed VAT invoice can be issued setting out only the following:

1. The name, address and registration number of the retailer
   
2. The time of supply
   
3. A description sufficient to identify the goods or services supplied
   
4. The total amount payable including VAT
   
5. The rate of VAT in force at the time of supply

See Customs Notice 700 concerning the special rules for invoices concerning

• Petrol, derv, paraffin and heating oil;
• Credit cards;
• Another form of modified VAT invoices for retailers;
• Cash and carry wholesalers;
• Computer invoicing; and
• Calculation of VAT on invoices
  
  

(VATA 1994, Sch. 8)

Group

1. Food (this includes most food for human and animal consumption. The exceptions are mainly food supplied in the course of catering, confectionery, pet foods and hot take-away food)
   
2. Sewerage services and water (except distilled and bottled eater) but not if supplied to industry
   
3. Books, pamphlets, newspapers, journals, maps, music etc (but not stationery and posters)
   
4. Talking books for the blind and handicapped and wireless sets for the blind
   
5. Construction of buildings etc
   
6. Protected buildings
   
7. International services
   
8. Transport
   
9. Caravans and houseboats
   
10. Gold
    
11. Bank notes
    
12. Drugs, medicines, aids for the handicapped etc13. Imports, exports etc
    
13. Tax-free shops (repealed for supplies made after 30 June 1999)
    
14. Charities etc
    
15. Clothing and footwear
    

Notes

Except for exported goods and certain transactions in commodities, a supply is generally not zero-rated unless it is included in the zero-rated schedule (VATA 1994, Sch. 8)

A supply which can be classified as zero-rated overrides exemption.

A supply which is not outside the scope of VAT is standard-rated unless it falls within one of the categories of exempt or zero-rated or reduced-rated supplies.

(VATA 1994 Sch. 9)

Group

1. Land
   
2. Insurance
   
3. Postal services
   
4. Betting, gaming and lotteries
   
5. Finance
   
6. Education
   
7. Health and welfare
   
8. Burial and cremation
   
9. Subscriptions to trade unions, professional bodies and other public interest bodies
   
10. Sport, sports competitions and physical education
    
11. Works of art etc
    
12. Fund-raising events by charities and other qualifying bodies
    
13. Cultural services etc
    
14. Supplies of goods where input tax cannot be recovered (from 1 March 2000)
    
15. Investment gold (from 1 January 2000)

Notes

The descriptions of the zero rate and exempt groups are for ease of reference only and do not affect the interpretation of the groups (VATA 1994 s. 96(10))

Some suppliers can unilaterally elect to waive exemption of certain land and buildings (VATA 1994 Sch. 10, para. 2-4)

(VATA 1994, Sch. 7A)

Group

1. Domestic fuel or power
   
2. Installation of energy-saving materials
   
3. Grant funded installation of heating equipment or security goods in connection of gas supply
   
4. Womens sanitary products
   
5. Children's car seats
   
6. Residential conversions
   
7. Renovation and alteration of dwellings