Value Added Tax Act 1994 Schedule 1 paragraph 14

Exemption from registration

Paragraph 14 of Schedule 1 allows persons whose taxable supplies are wholly or largely zero-rated to apply to HMRC for exemption from VAT registration, even if they would otherwise exceed the registration thresholds.

• A person who makes or intends to make taxable supplies that are zero-rated may request exemption from VAT registration by satisfying HMRC that their supplies qualify.
• HMRC may grant the exemption at their discretion and maintain it until they decide it should no longer apply or the person withdraws the request.
• If there is a material change in the nature of the exempt person's supplies, they must notify HMRC within 30 days of the change or, if no specific day can be identified, within 30 days of the end of the quarter in which it occurred.
• If there is a material alteration in the proportion of the person's taxable supplies that are zero-rated in any quarter, they must notify HMRC within 30 days of the end of that quarter.