VATREG41500 | Registration in respect of distance selling from other Member States: the two year rule

Schedule 2, paragraph 7(3) provides that, where a person is registered under Schedule 2, paragraph 1(2) because he has opted to have his relevant supplies treated as being made in the UK, he must remain registered for the full calendar year of registration plus two full calendar years thereafter.

This rule will also apply to registrations effected under Schedule 2, paragraph 4(1)(a)(ii) because an option has been exercised.

Registrations effected under paragraph 4(1)(a)(i) will be subject to this rule only after the option has been exercised: the ‘clock’ starts on the EDR.

The registration can only be cancelled before the expiry of the two year rule if the option is revoked in the Member State of origin.