Value Added Tax Act 1994 section 44

Exemption from registration

Section 44 deals with the circumstances under which a person making or intending to make relevant acquisitions may be exempted from VAT registration, and the obligation to notify HMRC if circumstances change.

• A person making or intending to make relevant acquisitions can request exemption from registration if those acquisitions relate to transactions that would be zero-rated were they taxable supplies by a taxable person.
• HMRC has discretion to grant the exemption and will maintain it until they decide the request should no longer be acted upon or the person withdraws it.
• If a person who has been exempted subsequently makes an acquisition relating to a transaction that would attract VAT at a rate other than zero, they must notify HMRC of this change.
• The notification of any such change must be made within 30 days of the date the acquisition was made.