Register for VAT

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1. When to register for VAT

You must register if either:

  • your total taxable turnover for the last 12 months goes over 拢90,000 (the바카라 사이트� VAT 바카라 사이트痶hreshold)
  • you expect your taxable turnover to go over 拢90,000 in the next 30 days

This guide is also available in Welsh (Cymraeg).

You must also register (regardless of taxable turnover) if all of the following are true:

  • you바카라 사이트檙e based outside the UK
  • your business is based outside the UK
  • you supply any goods or services to the UK (or expect to in the next 30 days)

If you바카라 사이트檙e not sure if this applies to you, read the guidance on non-established taxable persons (NETPs) - basic information.

You can choose to register for VAT if your turnover is less than 拢90,000 (바카라 사이트榲oluntary registration바카라 사이트�).

You must pay HM Revenue and Customs (HMRC) any VAT you owe from the date they register you.

You do not have to register if you only sell VAT exempt or 바카라 사이트榦ut of scope바카라 사이트� goods and services.

If you run a private school, find out if you need to register for VAT.

Calculate your turnover

Taxable turnover is the total value of everything you sell that is not VAT exempt or 바카라 사이트榦ut of scope바카라 사이트� goods and services.

It also includes:聽

If you exceeded the threshold in the last 12 months

You must register if your total taxable turnover for the last 12 months goes over 拢90,000.

You have to register within 30 days of the end of the month when you went over the threshold. Your effective date of registration is the first day of the second month after you go over the threshold.

Example

On 15 July your total taxable turnover for the last 12 months is 拢100,000. That바카라 사이트檚 the first time it has gone over the VAT threshold. You must register by 30 August. Your effective date of registration is 1 September.

If you바카라 사이트檙e going to exceed the threshold in the next 30 days

You must register if you realise that your total taxable turnover is going to go over the 拢90,000 threshold in the next 30 days.

You have to register by the end of that 30-day period. Your effective date of registration is the date you realised, not the date your turnover went over the threshold.

Example

On 1 May, you arrange a 拢100,000 contract to provide services. You바카라 사이트檒l be paid at the end of May. You must submit your VAT registration application by 30 May. Your effective date of registration will be 1 May.

If you바카라 사이트檙e based in Northern Ireland and sell goods or services that are VAT exempt

You바카라 사이트檒l need to register if you only sell VAT exempt or 바카라 사이트榦ut of scope바카라 사이트� goods and services but you buy goods for more than 拢90,000 in any 12 month period from 바카라 사이트�바카라 사이트痶o use in your business.

If you take over a VAT-registered business

You must register for VAT if the combined taxable turnover of the new business and your existing business is over the threshold.

Late registration

If you register late, you must pay VAT on any sales you바카라 사이트檝e made since the date you should have registered.

You might need to pay a penalty, depending on how much you owe and how late your registration is.

If you go over the threshold temporarily

You can apply for a registration 바카라 사이트榚xception바카라 사이트� if your taxable turnover goes over the threshold temporarily.聽

HMRC will consider your exception and write to confirm if you get one. If not, they바카라 사이트檒l register you for VAT.

Exemption from registration

If most of your taxable goods or services have a VAT rate of 0% (zero-rated supplies) you might not need to register for VAT. You바카라 사이트檒l need to ask HMRC for permission - this is called an exemption from registration.

If you바카라 사이트檙e a non-established taxable person, all of your taxable goods or services must be zero-rated in order to be eligible for exemption from registration.

Apply for an exemption from registration either:聽

If you dispose of assets and have claimed a repayment of VAT on them, you will need to fill in form VAT1C and the VAT1 registration form.

What happens next

HMRC will write to you to let you know whether your exemption application has been approved. If your application is rejected, HMRC will register you for VAT.

2. How to register for VAT

You can usually register for VAT online.

You can start聽charging聽VAT聽on your sales and聽reclaiming聽VAT聽on items you bought from your 바카라 사이트榚ffective date of registration바카라 사이트�.

What you need to register for VAT

The information you바카라 사이트檒l need to register for聽VAT聽depends on the type of your business.

Register a limited company

You바카라 사이트檒l need:

  • your company registration number
  • your business바카라 사이트檚 bank account details
  • your Unique Taxpayer Reference (UTR)
  • details of your annual turnover
  • an estimate of your taxable turnover for the next 12 months

You will also need information about:

  • your Self Assessment
  • your Corporation Tax
  • Pay As You Earn (PAYE)

Register as an individual or as a partnership

You바카라 사이트檒l need:

  • your National Insurance number
  • an identity document, like a passport or driving licence
  • your bank account details
  • your Unique Taxpayer Reference (UTR), if you have one
  • details of your annual turnover
  • an estimate of your taxable turnover for the next 12 months

You will also need information about:

  • your Self Assessment return
  • payslips
  • P60

Register for VAT online

You need a 바카라 사이트 Gateway user ID and password to register for VAT. If you do not already have a user ID you can create one when you sign in for the first time.

You do not have to complete your registration in one go. You can save your entry and go back to it later if you need to.

You바카라 사이트檒l need to fill in extra forms during your online registration, depending on your type of business.

When you cannot register online

You must바카라 사이트� register by post using VAT1 if:

  • you want to apply for a 바카라 사이트�registration exception바카라 사이트� because your taxable turnover has gone over the threshold temporarily
  • you바카라 사이트檙e joining the Agricultural Flat Rate Scheme聽
  • you바카라 사이트檙e a limited liability partnership registering as a representative member of a VAT group聽
  • you바카라 사이트檙e registering the divisions or business units of a body corporate under separate바카라 사이트�VAT registration 바카라 사이트痭umbers聽
  • you바카라 사이트檙e applying to register an overseas partnership聽
  • you바카라 사이트檙e a local authority, parish or district council
  • you바카라 사이트檙e an insolvency practitioner applying to register a business

Using an agent

You can appoint an accountant (or agent) to submit your VAT Returns and deal with HMRC on your behalf.

If you바카라 사이트檙e using an agent, you can still when you receive your 바카라 사이트�VAT registration 바카라 사이트痭umber.

After you register

After you바카라 사이트檝e registered for VAT you바카라 사이트檒l get:

  • a 9-digit VAT registration number which you must include on all invoices you raise
  • information about how to set up your business tax account (if you do not have one already) - you바카라 사이트檒l need this to access the VAT online service
  • information about when to submit your first VAT return and payment
  • confirmation of your registration date (known as your 바카라 사이트榚ffective date of registration바카라 사이트�)

You바카라 사이트檒l get this information by post.

HMRC will sign up your business to Making Tax Digital for VAT, unless it is exempt, or you바카라 사이트檝e applied for an exemption.

Sign up for a VAT online account

You must as soon as you receive your VAT registration number.

  1. Sign in to 바카라 사이트 Gateway.

  2. Select 바카라 사이트楢dd a tax, duty or scheme now바카라 사이트�.

  3. Select 바카라 사이트�VAT and VAT Services바카라 사이트�.

  4. Choose from the list of services.

If you바카라 사이트檝e already registered for VAT and you바카라 사이트檙e waiting to hear back, check when you can expect a reply.

Accounting for VAT while you wait for your VAT registration number

You cannot include VAT on your invoices until you get your VAT registration number, but you can increase your prices to account for the VAT you바카라 사이트檒l need to pay to HMRC.

Example

On 1 May, you arrange a 拢100,000 contract to provide services to a new customer. You register for VAT because you know you바카라 사이트檒l go over the threshold in the next 30 days.

Your effective date of registration is 1 May. This means you바카라 사이트檒l need to pay VAT to HMRC on any invoices you raise from that date.

To account for the VAT you바카라 사이트檒l need to pay, tell your customer that you바카라 사이트檒l be adding 20% to the original contract amount of 拢100,000 and then raise an invoice for 拢120,000.

After you get your VAT registration number, reissue the invoice showing the full amount including the 拢20,000 VAT. Your customer does not need to make any extra payment but can now reclaim the additional 拢20,000 from HMRC on their next VAT return.

3. Changing your VAT details

You must keep your VAT registration details up to date. Some changes mean you have to cancel your VAT registration or transfer your VAT registration.

Tell HM Revenue and Customs (HMRC) within 30 days of any changes to the:

  • name, trading聽name聽or main address of聽your business
  • accountant or agent who deals with your VAT
  • members of a partnership, or the name or home address of any of the partners

You might need to pay a penalty if you do not tell HMRC about changes within 30 days.

Updating details in your online account

Use your online account to update:

  • your contact name and address
  • your repayment bank details
  • your return dates (unless you have a non-standard tax period)
  • members of a partnership

Sign in to your VAT online account.

If you cannot use the online account

Contact HMRC to tell them about the change.

Changing the details of a partner in a partnership

You must send form VAT2 to the VAT Registration Service to report changes to a partner바카라 사이트檚 details, such as name or address.

Changing your company name

Who to tell you바카라 사이트檝e changed your company name depends on if you have a Company Registration Number (CRN) or you바카라 사이트檙e registered for Self Assessment.

If you have a CRN, tell Companies House.聽They바카라 사이트檒l tell HMRC.

If you바카라 사이트檙e registered for Self Assessment, tell the Self Assessment team.

Your business tax account will show your new company name within 15 days.

If you바카라 사이트檙e overseas, contact HMRC to update your company name.

Changing your bank details

You must tell HMRC at least 14 days in advance if you바카라 사이트檙e changing your bank details.

If you pay your VAT by Direct Debit, you바카라 사이트檒l need to tell your bank as well. Do not do this in the 5 banking days before or after your VAT return is due - it could mean you get charged twice.

If you use the Annual Accounting Scheme, you must write to the Annual Accounting Registration Unit to change your Direct Debit details. Include your registration number.

If you take over someone else바카라 사이트檚 VAT responsibilities

You must tell HMRC within 21 days if you take over the VAT responsibilities of someone who has died or is ill and unable to manage their own affairs.

To tell HMRC, do both of the following:

If you바카라 사이트檙e reporting an illness, include a copy of the Power of Attorney with form VAT68.

If you바카라 사이트檙e an insolvency practitioner

If you바카라 사이트檙e an acting insolvency practitioner and want to change VAT registration details you must contact HMRC.

If you join a VAT group

If you바카라 사이트檙e joining a VAT group, the group must complete a VAT50-51 form. You바카라 사이트檒l need to use the group바카라 사이트檚 VAT registration number once you바카라 사이트檝e joined it. The VAT group should tell HMRC about the new member.

4. Cancel your VAT registration

You must cancel your registration if you바카라 사이트檙e no longer eligible to be VAT registered. For example:

  • you stop trading or making VAT taxable supplies
  • you join a VAT group

You must cancel within 30 days if you stop being eligible or you might be charged a penalty.

If your taxable turnover falls below 拢88,000 you can ask HM Revenue and Customs (HMRC) to cancel your registration, unless all of the following are true:

  • you and your business are based outside the UK
  • you supply any goods or services to the UK (or expect to in the next 30 days)

If you have an EORI number

HMRC will automatically cancel your Economic Operators Registration and Identification (EORI) number at the same time as they cancel your VAT registration.

Find out what to do if you still need an EORI number, and to keep using authorisations or licences.

When you do not need to cancel

You do not need to cancel your VAT registration if:

Cancel online

You can cancel your VAT registration online if:

  • you바카라 사이트檝e stopped trading and you바카라 사이트檙e not part of a VAT group
  • your taxable turnover is below 拢88,000
  • you바카라 사이트檝e stopped making VAT taxable goods or services
  • you바카라 사이트檙e applying for an exemption if most or all of what you sell is VAT zero-rated

To cancel your VAT registration online, you바카라 사이트檒l need your 바카라 사이트 Gateway user ID and password.

When you cannot cancel online

You must cancel by post if:

  • your legal status has changed and you want a new VAT registration number
  • you바카라 사이트檝e sold your business and the owner is not keeping the VAT registration number
  • your VAT group is closing (바카라 사이트榙isbanding바카라 사이트�) - you바카라 사이트檒l also need to complete a VAT50-51 form and send both forms together to HMRC
  • your business stopped trading after liquidation

.

You바카라 사이트檒l need to fill in the form fully before you can print it. You cannot save a partly completed form.

Print and send your completed VAT7 form with any other completed forms to HMRC. The address to send it to is in the form.

What happens next

It usually takes 3 weeks for HMRC to confirm your cancellation and the official cancellation date. This is either the date when the reason for your cancellation took effect (for example, when you stopped trading), or the date you asked to cancel.

HMRC will send confirmation to your or through the post if you do not apply online.

You must stop charging VAT from the cancellation date. You바카라 사이트檒l need to keep all VAT records for 6 years.

HMRC will automatically re-register you if they realise you should not have cancelled. You바카라 사이트檒l have to account for any VAT you should have paid in the meantime.

VAT after you cancel

You바카라 사이트檒l have to submit a final VAT Return for the period up to and including the cancellation date.

You must account for any stock and other assets you have on this date if both of the following apply:

  • you reclaimed or could have reclaimed VAT when you bought the assets
  • the total VAT due on these assets is over 拢1,000

You must submit your final return within one month of the cancellation date, unless you are on the Cash Accounting Scheme.

If you바카라 사이트檙e on the Cash Accounting Scheme, submit your final return within 2 months of the cancellation date.

Do not wait until you바카라 사이트檝e received all your invoices before submitting your final return. When you get them you바카라 사이트檒l still be able to reclaim VAT.

5. Transfer your VAT registration

You can transfer a VAT registration number if there바카라 사이트檚 a change of business ownership or legal status.

For example, if:

  • you take over a company and want to keep using its VAT registration number
  • your business changes from a partnership to a sole trader

This means the business will keep the same VAT registration number.

Apply for a transfer

To transfer your VAT registration number when the legal status of your business changes (also known as a 바카라 사이트榗hange of legal entity바카라 사이트�):

You can check the progress of your application.

Buying a business

To transfer the VAT registration number:

HMRC will treat the form VAT68 as the seller바카라 사이트檚 cancellation and transfer to you. They do not need to fill in form VAT7.

You can check the progress of your application.

What happens next

If you바카라 사이트檙e selling your business:

  • cancel your accountant바카라 사이트檚 access to your VAT online account - for example if you authorised them to deal with your VAT
  • cancel any direct debits on your VAT online account

You must also give your records to the buyer if you바카라 사이트檙e passing on your VAT number.

If you바카라 사이트檙e buying a business:

  • contact HMRC within 21 days of the transfer application if you want to keep the seller바카라 사이트檚 accountant
  • replace any self-billing arrangements with new ones
  • set up new direct debits on your VAT online account

If you prefer to get a new VAT number聽

If you want to get a new VAT number rather than keeping the existing one, you need to cancel the existing VAT registration and register for VAT again.

6. Registering for VAT in EU countries

What you need to do depends on whether you바카라 사이트檙e selling goods or services and where you바카라 사이트檙e selling from.

If you sell goods from Northern Ireland to the EU

If the total value of goods you바카라 사이트檝e sold to customers in the EU is more than 拢8,818 (the 바카라 사이트榙istance selling threshold바카라 사이트�), you must pay VAT in the countries the goods are sent to.

Register for VAT either:

Check how to report and pay VAT on distance sales of goods from Northern Ireland to the EU.

If you sell goods from the UK to the EU

You do not normally need to charge VAT on goods you sell to any customers outside the UK. You only need to be registered for VAT with HM Revenue and Customs (HMRC). You can charge VAT at zero rate for these sales.

Find out more about charging VAT on goods you export.

If you supply services from the UK to the EU

If you supply services from the UK to customers in the EU, you can register for the non-union VAT OSS.

Find out more about the non-union on the European Commission website.

Find out what to do if you supply digital services to customers in the EU.

7. Selling or moving goods between Northern Ireland and the EU

You need a VAT registration number starting with XI to trade under the Northern Ireland Protocol.

You are eligible to operate under the terms of the Northern Ireland Protocol if any of the following apply:

  • your goods are located in Northern Ireland at the time of sale
  • you receive goods in Northern Ireland from VAT-registered EU businesses for business purposes
  • you sell or move goods from Northern Ireland to an EU country

as trading under the Northern Ireland Protocol.

Telling HM Revenue and Customs (HMRC) will help them to identify you as trading under the Northern Ireland Protocol. This will mean that:

  • you can use VAT simplifications when you trade with the EU
  • your suppliers can charge goods that they send to you from the EU at zero rate
  • your trade with the EU can still be listed as 바카라 사이트榓cquisitions and dispatches바카라 사이트� on your VAT return

Tell HMRC you바카라 사이트檙e eligible

.

You바카라 사이트檒l need:

  • the 바카라 사이트 Gateway user ID and password you used when you registered for VAT
  • your VAT registration number
  • the name of your business

After you tell HMRC

You바카라 사이트檒l get an email from HMRC to confirm that you바카라 사이트檝e been recorded as operating under the Northern Ireland Protocol.

After you get the email, you바카라 사이트檒l need to start using the XI prefix before your usual VAT registration number - for example, XI 123456789 instead of GB 123456789.

Using your XI VAT registration number

You must use your XI VAT registration number on all documentation when communicating with EU customers or suppliers (for example, on invoices).

If you바카라 사이트檙e selling goods from Northern Ireland to VAT-registered customers in the EU, complete an EC Sales List.

If you do not tell HMRC or use an XI VAT registration number, it could mean that you pay or charge the wrong VAT on goods.

If you바카라 사이트檝e stopped selling or moving goods in Northern Ireland

.

You must complete any obligations you have for the following schemes before you revoke your Northern Ireland trader status:

  • VAT One Stop Shop (OSS) union scheme returns
  • EC sales lists
  • EU VAT refunds

You will not be able to complete any obligations for these schemes once you바카라 사이트檝e told HMRC you wish to revoke your status.