A taxable person who makes only zero-rated supplies may request to be excluded from the mandatory VAT registration requirement although it may be beneficial for them to be registered for VAT if they will be entitled to claim VAT back on costs.

It is important to note that any person, individual, company or partnership which makes taxable supplies may be required to register for VAT if their supplies exceed the VAT registration threshold.

The person needs to establish whether they are considered to be making taxable supplies by way of business.

The concept of business is broad and includes:

  • activities conducted regularly, on an ongoing basis, independently and in any location;
  • industrial, commercial, agricultural, professional, services or excavation activities;
  • anything related to the use of tangible or intangible properties.

Therefore, individuals who receive income from any of the above activities may find themselves liable to be registered for VAT.