New queries, issue 4590

Online threshold

Determining online seller’s eligibility to join a flat rate scheme.

My client runs a small VAT-registered business with most of the sales coming from Amazon UK and would like to join the flat rate scheme. On the relevant GOV.UK page covering eligibility to join the scheme it states that the flat rate scheme can be used if VAT taxable turnover is expected to be £150 000 or less (excluding VAT) in the next 12 months. You can then click a link to find out what is meant by VAT taxable turnover. This list includes ‘services you received from businesses in other countries that you had to reverse charge’.

However this seems to contradict VAT regulations 1995 reg 55L. This states that when calculating the value of a person’s taxable supplies to determine whether they have exceeded the £150 000 threshold ‘any...