Does anyone have an opinion on the VAT registration threshold?
Should it be increased to take more small companies out of VAT?
Should it be decreased so companies close to the threshold are on a level playing field with their competitors.
I'm of the opinion it should be reduced to the lowest level possible for a couple of reasons. It means everyone is on a level playing field as I mentioned above and also, well, people don't like to do VAT themselves and like to get bookkeepers in to do that sort of thing.
I tried to find out the thresholds in other EU countries but had no such luck although I got the impression there was no threshold in some countries, as soon as you start trading you have to charge VAT.
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Never buy black socks from a normal shop. They shaft you every time.
I can vouch from a friend of mine that there is no threshold in Poland. If you are in business, then you have to register for VAT.
For micro businesses dealing with consumers, not having to be VAT registered is a BIG benefit (20% less is a lot). So I think the current threshold is about right.
If you are a micro business doing B2B stuff, then you may want to register just to look as though you are bigger than you really are.
Keep it as it is is my opinion. What I would do away with though is all the useless schemes we have in the UK. Imagine being on the margin scheme with Cash Accounting and the flat rate thrown in (not sure if that combination is possible) and then issuing a discounted invoice. Complete mess like the rest of the UK tax system ;)
