ABSTRACT
VAT registered means registered for VAT purposes, i.e., entered into an official VAT payers register of a country. Both natural persons and legal entities can be VAT registered. Countries that use VAT have established different thresholds for remuneration derived by natural persons/ legal entities during a calendar year (or a different period), by exceeding which the VAT registration is compulsory. Natural persons/ legal entities that are VAT registered are obliged to calculate VAT on certain goods/ services that they supply and pay VAT into a particular state budget. VAT registered persons/ entities are entitled to a VAT deduction under legislative regulations of a particular country. The introduction of a VAT can reduce the cash economy because businesses that wish to buy and sell with other VAT registered businesses must themselves be VAT registered.*
As of November 2011, 11 countries and 9 territories under 2 countries remain VAT free in the world.
