Michael has an annual turnover of €80,000.
He has incurred VAT on his stock purchased for re-sale in the amount of €11,220.
Michael can reduce his turnover figure by the €11,220 when determining whether he has breached the threshold.
€80,000 minus €11,220 equals €68,780.
As the adjusted turnover is below the registration limit of €75,000, he is not obliged to register.