Skip to content

ACCA Applied Skills · Taxation (UK) · The VAT registration requirements

Ostrander Ltd, trading for several years, discovers it was required to be VAT registered from 1 March 2026 but registered late. It had no output tax errors beyond failing to charge VAT. Which statement about its position is correct?

Ostrander Ltd must account for VAT from the date it should have been registered, 1 March 2026, not the date it actually registered. It cannot automatically recover that VAT from customers on past supplies, so it generally bears the cost unless customers agree.

  1. AIt need only pay VAT on supplies made after the date it actually registered
  2. BIt must account for VAT from the date it should have been registered, and cannot simply add it to past prices unless the customers agreeCorrect
  3. CIt is treated as registered from the date HMRC discovers the failure
  4. DIt pays VAT only on supplies exceeding £90,000 in the 12 months

Explanation

A late-registered trader is liable for output VAT from the date it should have been registered. It cannot automatically recover that VAT from customers on past supplies, so it normally bears the cost itself unless contracts allow otherwise. The other options misstate the effective date.

Did you get it right without looking?

One question tells you little. A timed set on The VAT registration requirements shows your real accuracy, how long you take and where you lose marks.

Practise The VAT registration requirementsFree diagnostic mock

More The VAT registration requirements questions