Taxable person

In the context of value added tax (www.practicallaw.com/A37171) (VAT), a supplier who has made supplies over the past 12 months exceeding (or there are reasonable grounds for believing that such value will exceed in the next month) the registration limit. A taxable person must account to HM Revenue and Customs (HMRC) (www.practicallaw.com/6-200-6399) for VAT on its taxable supplies (www.practicallaw.com/A37063).

A supplier may also become a taxable person by registering voluntarily if either:

  • It makes taxable supplies; or

  • It is carrying on a business and intends to make taxable supplies.

A taxable person can be an individual, a partnership, a company or other legal entity.

For further information, see Practice note, Value added tax: Taxable persons and VAT registration (www.practicallaw.com/2-107-3725).