The business must register for VAT

Taxable turnover for VAT is the total value of supplies that are taxed at either the standard, reduced or zero rate. (The supply of goods and services that are exempt from VAT is not included in taxable turnover.)

You must register for VAT if:

• The taxable turnover of the business, at the end of any month, exceeded the VAT registration threshold in any past period of 12 months or less (ie the business has already gone over the VAT registration threshold).
• The value of the taxable supplies you expect to make in the next 30 days mean that you will go over the VAT threshold. This could happen when, for example, a business wins a big contract to supply goods or services, which would mean substantially increasing its planned supplies over the next 30 days.
• At sometime in the past, you expected the value of the taxable supplies to go over the VAT threshold in the next 30 days alone. This could happen if, for example, a business planned to run an exhibition and anticipated selling so many tickets it expected to go over the VAT threshold. The business should register irrespective of the actual sales that were made.

Find information on the VAT registration threshold