Value Added Tax Act 1994, Schedule 1, paragraph 1

Liability to be registered

SCHEDULE 1 Registration in respect of taxable supplies : UK establishment

1 (1) Subject to sub-paragraphs (3) to (7) below, a person who makes taxable supplies but is not registered under this Act becomes liable to be registered under this Schedule—

(a) at the end of any month, if [F961the person is UK-established andF961] the value of his taxable supplies in the period of one year then ending has exceeded [F962£90,000F962] ; or

(b) at any time, if [F963the person is UK-established andF963] there are reasonable grounds for believing that the value of his taxable supplies in the period of 30 days then beginning will exceed [F964£90,000F964] .

(2) Where a business[F965 , or part of a business,F965] carried on by a taxable person is transferred to another person as a going concern [F966, the transferee is UK-established at the time of the transfer and the transferee is not registered under this Act at that timeF966] , then, subject to sub-paragraphs (3) to (7) below, the transferee becomes liable to be registered under this Schedule at that time if—

(a) the value of his taxable supplies in the period of one year ending at the time of the transfer has exceeded [F967£90,000F967] ; or

(b) there are reasonable grounds for believing that the value of his taxable supplies in the period of 30 days beginning at the time of the transfer will exceed [F968£90,000F968] .

[F969 (2A) In determining the value of a person's supplies for the purposes of sub-paragraph (1)(a) or (2)(a), supplies are to be taken into account (subject to sub-paragraphs (3) to (7)) whether or not the person was UK-established when they were made.F969]

(3) A person does not become liable to be registered by virtue of sub-paragraph (1)(a) or (2)(a) above if the Commissioners are satisfied that the value of his taxable supplies in the period of one year beginning at the time at which, apart from this sub-paragraph, he would become liable to be registered will not exceed [F970£88,000F970] .

(4) In determining the value of a person’s supplies for the purposes of sub-paragraph (1)(a) or (2)(a) above, supplies made at a time when he was previously registered under this Act shall be disregarded if—

(a)F972 his registration was cancelled otherwise than under paragraph 13(3) below, [F971paragraph 11 of Schedule 1AF971] ... [F973or paragraph 6(2) of Schedule 3AF973] , and

(b) the Commissioners are satisfied that before his registration was cancelled he had given them all the information they needed in order to determine whether to cancel the registration.

(5)F975 A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 13(3) below, [F974paragraph 11 of Schedule 1AF974] ... [F973or paragraph 6(2) of Schedule 3AF973] .

(6) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2(5), 3 or 4 below.

(7)F976 In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies of goods or services that are capital assets of the business in the course or furtherance of which they are supplied ... shall be disregarded.

(8) Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (7) above be disregarded for the purposes of sub-paragraph (1) or (2) above, it shall not be if it is supplied on a taxable supply which is not zero-rated.

[F977 (9) In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies to which section 18B(4) (last F978 ... supply of goods before removal from fiscal warehousing) applies and supplies treated as made by him under section 18C(3) (self-supply of services on removal of goods from warehousing) shall be disregarded.F977]

[F979 (10) A person is “UK-established” if the person has a business establishment, or some other fixed establishment, in the United Kingdom in relation to a business carried on by the person. F979]

Definitions used in Schedule 1, paragraph 1 8

taxable supply

“taxable supply” has the meaning given by section 4(2);

Defined in s.96(1) · see it in the full Act
business

(1) In this Act “business” includes any trade, profession or vocation.

Defined in s.94(1) · see it in the full Act
taxable person

“taxable person” means a person who is a taxable person under section 3;

Defined in s.96(1) · see it in the full Act
the transferee

(a) there is a supply of any of the assets of a business of a person (“the transferor”) to a person to whom the whole or any part of that business is transferred as a going concern (“the transferee”), and

Defined in Sch.9A para.1(6) · see it in the full Act
the Commissioners

“the Commissioners” means the Commissioners of Customs and Excise;

Defined in s.96(1) · see it in the full Act
supplied

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.7A para.A1 · see it in the full Act

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.8 para.3 · see it in the full Act
fiscal warehouse

(7) In this paragraph “fiscal warehouse” and “fiscal warehousekeeper” have the meaning they have in sections 18A to 18F (see section 18F).

Defined in Sch.9ZB para.18(7) · see it in the full Act
treated as made

(3) References in this Schedule to scheme supplies being “treated as made” in the United Kingdom are to their being treated as made in the United Kingdom by paragraph 29(1) of Schedule 9ZB.

Defined in Sch.9ZD para.38(3) · see it in the full Act

Cases considering Schedule 1, paragraph 1 5

The Commissioners for HMRC v Sintra Global, Inc & Anor

[2025] EWCA Civ 1661 · 18 December 2025

The obligation to notify liability to register for VAT supplies the underlying tax component of the registration penalty. (see paras [14], [132], [146])

Impact Contracting Solutions Limited v The Commissioners for HMRC

[2025] EWCA Civ 623 · 16 May 2025

The court identified paragraph 1 as the general threshold-based rule requiring VAT registration where annual taxable supplies exceed or are expected to exceed the threshold. (see paras [13]; [18]; [77]) The registration threshold was applied by reference to taxable outputs, not inputs, so legitimate or tainted input supplies did not determine compulsory registration. (see paras [18]; [77])

Impact Contracting Solutions Limited v The Commissioners for HMRC

[2023] UKUT 215 (TCC) · 1 September 2023Limits

The Tribunal held that liability to be registered under paragraph 1(1), including by reason of untainted supplies above the threshold, does not itself prevent Ablessio-based deregistration. Such supplies may be relevant to proportionality in a particular case. (see paras [58]-[61]; [87]; [100])

What each judgment says about Schedule 1, paragraph 1 is in the case-law panel in the full Act.

Amendments and notes

19 notes from legislation.gov.uk

Amendments

  1. F961Words in Sch. 1 para. 1(1)(a) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(2)(a)
  2. F962Sum in Sch. 1 para. 1(1)(a) substituted (1.4.2024) by The Value Added Tax (Increase of Registration Limits) Order 2024 (S.I. 2024/307), arts. 1, 2(2)(a)
  3. F963Words in Sch. 1 para. 1(1)(b) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(2)(b)
  4. F964Sum in Sch. 1 para. 1(1)(b) substituted (1.4.2024) by The Value Added Tax (Increase of Registration Limits) Order 2024 (S.I. 2024/307), arts. 1, 2(2)(a)
  5. F965Words in Sch. 1 para. 1(2) inserted (with effect in accordance with s. 100(10) of the amending Act) by Finance Act 2007 (c. 11), s. 100(8)
  6. F966Words in Sch. 1 para. 1(2) substituted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(3)
  7. F967Sum in Sch. 1 para. 1(2)(a) substituted (1.4.2024) by The Value Added Tax (Increase of Registration Limits) Order 2024 (S.I. 2024/307), arts. 1, 2(2)(a)
  8. F968Sum in Sch. 1 para. 1(2)(b) substituted (1.4.2024) by The Value Added Tax (Increase of Registration Limits) Order 2024 (S.I. 2024/307), arts. 1, 2(2)(a)
  9. F969Sch. 1 para. 1(2A) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(4)
  10. F970Sum in Sch. 1 para. 1(3) substituted (1.4.2024) by The Value Added Tax (Increase of Registration Limits) Order 2024 (S.I. 2024/307), arts. 1, 2(2)(b)
  11. F972Words in Sch. 1 para. 1(4)(a) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(2)(a) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  12. F971Words in Sch. 1 para. 1(4)(a) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(5)
  13. F973Words in Sch. 1 para. 1(4)(a)(5) substituted (28.7.2000 with effect as mentioned in s. 136(10) of the amending Act) by 2000 c. 17, s. 136(6)(a)
  14. F975Words in Sch. 1 para. 1(5) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(2)(b) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  15. F974Words in Sch. 1 para. 1(5) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(6)
  16. F976Words in Sch. 1 para. 1(7) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(2)(c) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  17. F977Sch. 1 para. 1(9) added (1.6.1996 with application to any acquisition of goods from another member State and any supply taking place on or after that day) by 1996 c. 8, ss. 25, 26, Sch. 3 para. 13; S.I. 1996/1249, art. 2
  18. F978Words in Sch. 1 para. 1(9) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(2)(d) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  19. F979Sch. 1 para. 1(10) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(7)