Letter from HMRC saying my business turnover is getting near the threshold

Hello, I received a letter from HMRC saying that my business is getting near the threshold. As I only make supplies outside the UK, my understanding is that these should not count towards the UK VAT registration threshold of £85,000. I believe that VAT registration is not required, even if my sales go beyond the £85,000 threshold. But do I still need to take any action in responding the letter, for example, writing back to HMRC to explain my situation? Thanks very much for guidance/confirmation.

 

Hi. If you supply services to overseas business which come under the 'General Rule Services ' then these supplies will be Outside The Scope Of VAT and there will be no requirement to register for VAT. If you export goods outside the UK and these supplies are over the £85K threshold then there will be a requirment to register for VAT  but you can apply for an Exemption from Registration . Please see the guidance below: Place of supply of services (VAT Notice 741A) Who should register for VAT (VAT Notice 700/1) I would recommend responding to the letter and explain your situation . Thank you  .

Hello HMRC Admin 17, Thank you so much for providing clarification. Could you please provide guidance on the appropriate HMRC address to which I should send my response? I noticed there is no reply address indicated in the HMRC letter I received. Or is it appropriate to respond to the letter online via the VAT general enquiry form? https://www.tax.service.gov.uk/shortforms/form/VATGenEnq?dept-name=&sub-dept-name=&location=47 Thanks again for your help.

Hi enquiry_nov2023,
I would only respond to the letter if the letter has asked you for a response.
If you're satisfied that there is no requirement to register for VAT then there will be no action which you would need to take.
Thank you.