Glastonbury and festival season brings VAT complications

With the festival season well under way, traders and stall holders need to be aware of unexpected seasonal spikes in income and VAT registration rules, explains Alex Baulf, vice president of global indirect tax at Avalara

It is important to note that there is no automatic VAT registration in the UK. Today, once an organisation’s taxable turnover goes above £90,000 in any 12-month period, or they expect to cross that line within the next 30 days, they have a legal requirement to notify HMRC and register for VAT.

And there are deadlines for this. Businesses must register within 30 days from the end of the month in which they exceed this threshold. However, if they miss this deadline, an organisation can still look to register late but may face penalties.

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