© 2025 by Michael Firth KC, Gray's Inn Tax Chambers
Contact: michael.firth@taxbar.com
U1. Registration
Purpose of registration
​
- Ensuring the VAT system operates properly/proof of status
"[29] The VAT identification number is an important piece of evidence of the operations carried out. Indeed, the VAT Directive requires, in a number of provisions relating, in particular, to invoicing, declarations and summary statements, that this identification number of the taxable person or the recipient of the goods or services be referred to in those documents (judgment of 14 March 2013, Ablessio, C‑527/11, EU:C:2013:168, paragraph 20)." (Cityland C-164/24)
​
"[18] The essential aim of identifying taxable persons, as provided for under Article 214 of Directive 2006/112, is to ensure that the VAT system operates properly (see, to that effect, Case C-438/09 Dankowski [2010] ECR I-14009, paragraph 33).
[19] In that regard, the Court has already held that the allocation of a VAT identification number provides proof of the tax status of the taxable person for the purposes of applying VAT and simplifies the inspection of taxable persons with a view to ensuring the correct collection of the tax. Under the transitional arrangements for tax applicable to trade within the European Union, the identification of taxable persons subject to VAT by means of an individual number also facilitates the determination of the Member State in which the final consumption of the goods delivered takes place (see, to that effect, Case C-273/11 Mecsek-Gabona [2012] ECR I-0000, paragraphs 57 and 60, and Case C-587/10 VSTR [2012] ECR I-0000, paragraph 51)." (Ablessio C-527/11)
​
- VAT number is important evidence relating to making and receiving supplies
"[20] In addition, the VAT identification number is an important piece of evidence of the operations carried out. Indeed, Directive 2006/112 requires, in a number of provisions relating, in particular, to invoicing, declarations and summary statements, that this identification number of the taxable person or the recipient of the goods or services be referred to in those documents." (Ablessio C-527/11)
​
Implementation of registration system​
​
- Member states have a certain discretion
"[22] It must be observed that, although Article 214 of Directive 2006/112 lists the categories of persons who must be identified by an individual number, that provision does not stipulate the conditions which may be placed on the issuing of the VAT identification number. Indeed, it follows from the wording of that article and Article 213 of Directive 2006/112 that Member States have a certain discretion when they adopt measures to ensure the identification of taxable persons for the purposes of VAT." (Ablessio C-527/11)
​
- Not unrestricted
"[30] The Court has held that, first, it follows from Articles 213 and 214 of the VAT Directive that Member States have a certain discretion when they adopt measures to ensure the identification of taxable persons for the purposes of VAT and, second, that discretion cannot be unrestricted. Although it is possible for a Member State to refuse to assign an individual number to a taxable person, it cannot do so without legitimate grounds (see, to that effect, judgments of 14 March 2013, Ablessio, C‑527/11, EU:C:2013:168, paragraphs 22 and 23, and of 18 November 2021, Promexor Trade, C‑358/20, EU:C:2021:936, paragraph 41)."(Cityland C-164/24)
​
- Obliged to check applicant's status as taxable person before assigning VAT number
"[29] Furthermore, Member States are obliged to guarantee the accuracy of the entries in the register of taxable persons to ensure that the VAT system operates properly. It therefore falls to the competent national authority to check an applicant’s status as a taxable person before it assigns that person a VAT identification number (see Mecsek-Gabona, paragraph 63)." (Ablessio C-527/11)
​
ENTITLEMENT TO BE REGISTERED​
​
- Must have legitimate grounds to refuse registration to taxable person
"[23] However, that discretion cannot be unrestricted. Although it is possible for a Member State to refuse to assign an individual number to a taxable person, it cannot do so without legitimate grounds." (Ablessio C-527/11)
​
- Cannot refuse solely on ground that T does not yet have resources to carry out planned activity
"[27] Consequently, Directive 2006/112, and particularly Articles 213 and 214, preclude the tax authority of a Member State from refusing to assign a VAT identification number to applicants solely on the ground that they are not in a position to show that they have at their disposal the material, technical and financial resources to carry out the economic activity declared at the time of submitting their application for registration on the register of taxable persons." (Ablessio C-527/11)
​
- Can take proportionate measures to ensure identification numbers not misused
"[30] Therefore, Member States can, in accordance with Article 273, first paragraph, of Directive 2006/112, legitimately take measures that are necessary to prevent the misuse of identification numbers, in particular by undertakings whose activity, and consequently their status as taxable persons, is purely fictitious. However, these measures must not go beyond what is necessary for the correct collection of the tax and the prevention of evasion, and they must not systematically undermine the right to deduct VAT, and hence the neutrality of that tax (see, to that effect, Case C-146/05 Collée [2007] ECR I-7861, paragraph 26; Nidera Handelscompagnie, paragraph 49; Dankowski, paragraph 37; and VSTR, paragraph 44)." (Ablessio C-527/11)
​
Fraud and abuse
​
- Refusal must be based on sound evidence that it is probable VAT registration will be used fraudulently
"[34] In order to be considered proportionate to the objective of preventing evasion, a refusal to identify a taxable person by an individual number must be based on sound evidence giving objective grounds for considering that it is probable that the VAT identification number assigned to that taxable person will be used fraudulently. Such a decision must be based on an overall assessment of all the circumstances of the case and of the evidence gathered when checking the information provided by the undertaking concerned." (Ablessio C-527/11)
​
- Absence of adequate resources plus other objective evidence may be sufficient
"[36] In the circumstances of the case in the main proceedings, it must be noted that the fact that a taxable person is not in possession of the material, technical and financial resources to carry out the declared economic activity is not, in itself, sufficient to demonstrate that it is probable that the latter intends to commit tax evasion. However, it cannot be excluded that circumstances of this nature, corroborated by the presence of other objective elements leading to the suspicion of the taxable person’s fraudulent intentions, may constitute factors that have to be taken into account as part of the overall assessment of the risk of evasion." (Ablessio C-527/11)
​
Notice to HMRC​
​
- Duty to inform HMRC when activity as taxable person commences or changes
"(1) Every taxable person shall state when his activity as a taxable person commences, changes or ceases.
Member States shall allow, and may require, the statement to be made by electronic means, in accordance with conditions which they lay down.
(2) Without prejudice to the first subparagraph of paragraph 1, every taxable person or non-taxable legal person who makes intra-Community acquisitions of goods which are not subject to VAT pursuant to Article 3(1) must state that he makes such acquisitions if the conditions, laid down in that provision, for not making such transactions subject to VAT cease to be fulfilled." (Article 213)
​
Application for registration​
​
- Directive does not limit number of applications
"[37] Similarly, Directive 2006/112 makes no provision for a limitation on the number of applications for individual VAT identification numbers that may be made by the same person acting on behalf of different legal entities. Nor does the directive permit the inference that the transfer of control of these legal entities after they have been identified for VAT purposes constitutes an illegal activity. However, such circumstances can also be taken into account as part of an overall assessment of the risk of evasion." (Ablessio C-527/11)
​
HMRC to maintain a single register
"(2) Schedules 1 to 3A shall have effect with respect to registration (and see also Parts 8 and 9 of Schedule 9ZA which contain further provisions about registration).
(3) Persons registered under any of those Schedules and Part 8 and 9 of Schedule 9ZA shall be registered in a single register kept by the Commissioners for the purposes of this Act; and, accordingly, references in this Act to being registered under this Act are references to being registered under any of those Schedules or those Parts.
(4) The Commissioners may by regulations make provision as to the inclusion and correction of information in that register with respect to the Schedule under which any person is registered." (VATA 1994, s.3)
​