Value Added Tax Act 1994 section 42

Local authorities

Section 42 deals with the VAT registration requirements for local authorities, removing the normal registration threshold so that any local authority making taxable supplies must register regardless of value.

• Local authorities making taxable supplies must register for VAT regardless of the value of those supplies.
• The normal VAT registration threshold that applies to other businesses does not apply to local authorities.
• Even if a local authority's taxable supplies over a one-year period fall below the registration threshold set out in Schedule 1, the authority is treated as though its supplies exceed that threshold.
• Schedule 1 registration rules apply to local authorities in all cases, with no exemption for low-value supplies.