Do we need to register?

We are a newly formed small charity (SCIO) with one shop and our accountant has told us we should register for VAT. We will only be selling donated goods (which I understand are zero-rated). With that in mind, do we HAVE to register? Also, our accountant says that we can claim back VAT on, for example, our rent and shop set up costs despite the fact that we won't actually be paying any VAT to HMRC. Surely that can't be right, is it? If it's right then obviously it would be beneficial for us to register despite the additional admin. Any help is appreciated. Many thanks.

Hi,
If you make only zero rated supplies then these are still considered taxable supplies and so there would be an obligation to register for VAT if your sales go over the £90K threshold.
However you can apply for an exemption from registration on the basis that your supplies are all zero rated.
Please see the guidance below, section 3.11:
Working out whether you need to register
If you do register for VAT then as a VAT registered entity you are entitled to recover VAT as input tax incurred in the course of your business.
Please see the guidance below:
Introduction to input tax
Thankyou.

Thank you for that information - much appreciated. We anticipate our sales will be in excess of £90k so we will register. I have read the introduction to input tax but I am still unsure of whether we can claim back VAT when we are not going to be paying any VAT because we won't be charging VAT on anything we sell. Would you be able to clarify in simple terms for me please? [edited]

Hi Christopher,
Yes.As long as you register for VAT and you are making either zero, reduced or standard rated supplies then you can look at recovering the VAT on your purchases.
As you sell donated goods then these would normally be zero rated and hence you can register for VAT on that basis and recover the VAT in the course of making these supplies.
Thank you. 
 

We are a small company limited by guarantee with sales below £70K and not registered for VAT. Do we need to register? Or can we use the W8 form, the vendor information request form, or an alternative form? We provided services for a supplier in the US.

Hi beece
If you a business in the UK and you provide services to a company in the US and your tunover is below the £90K threshold then there would be no requirement to register for VAT.
For most supplies overseas then these would be deemed as Outside the Scope of VAT and therefore would not form part of your turnover for VAT registration purposes.
There are exceptions for how some of these services are treated.
Please see the guidance below:
6. The place of supply rules for services
If you are trading below the threshold in the UK then you can register for VAT voluntarily.
Please see the guidance below:
Who should register for VAT (VAT Notice 700/1) Updated 10 July 2024
Thank you.