Value Added Tax Act 1994 Schedule 3A paragraph 7

Exemption from registration

Section 7 of Schedule 3A allows a person who makes or intends to make relevant supplies to be exempted from registration under this Schedule where those supplies are zero-rated, and sets out the notification obligations and consequences if circumstances change.

• A person making or intending to make relevant supplies that are zero-rated (or would be if that person were a taxable person) may request exemption from registration, which HMRC may grant at their discretion.
• If there is a material change in the nature of the supplies made by an exempt person, they must notify HMRC within 30 days of the change or, if no specific date can be identified, within 30 days of the end of the quarter in which it occurred.
• If the proportion of relevant supplies that are zero-rated changes materially in any quarter, the exempt person must notify HMRC within 30 days of the end of that quarter.
• If HMRC conclude that the exemption should no longer apply, or the person withdraws their request, HMRC will register that person with effect from the relevant date.