Spring Budget 2017 – VAT threshold changes

The VAT registration and deregistration thresholds will increase in line with inflation so that:

  • the taxable turnover threshold, which determines whether a person must be registered for VAT, will be increased from £83,000 to £85,000;
  • the taxable turnover threshold, which determines whether a person may apply for deregistration, will be increased from £81,000 to £83,000; and
  • the registration and deregistration threshold for relevant acquisitions from other EU member states will also be increased from £83,000 to £85,000.

These changes will be effective from 1 April 2017.

These changes will affect:

  • small businesses currently outside the VAT regime who make taxable supplies or EU acquisitions between £83,000 and £85,000 and who prior to these changes would have been required to register for VAT from 1 April 2017; and
  • Small businesses registered for VAT who make taxable supplies below £83,000 or EU acquisitions below £85,000.