- A taxable person in VAT terms is any person or body conducting economic activity independently.
- Economic activity generally refers to business activity in the UK.
- Taxable persons or bodies typically include businesses, sole traders, and professionals.
- Examples of legal entities that can be taxable persons include sole proprietors, partnerships, LLPs, limited companies, PLCs, CICs, CIOs, private unlimited companies, clubs or associations, unincorporated associations, co-operative societies, community benefit societies, trusts, charities, NPF entities, RTM companies, financial mutuals, Societas Europaea, and Section 33 bodies.
- Each entity type has specific rules regarding governance, tax, reporting, accounting, risks, costs, benefits, responsibilities, and legal rights.
- VAT legislation applies equally to all taxable persons.
- Corporate bodies can register as a VAT group or register divisions separately if conditions are met.
- Private individuals are generally not considered taxable persons as they are not typically involved in business.
- There is extensive case law on what constitutes business for VAT purposes.
- Articles discussing case law include Wakefield College, Longbridge, Babylon Farm, A Shoot, Y4 Express, Lajvér Meliorációs Nonprofit Kft, Healthwatch Hampshire CIC, Pertempts Limited, and Northumbria Healthcare.
- A guide to VAT registration is available.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
