You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £82,000. You can register voluntarily if it’s below this, unless everything you sell is exempt
- your VAT number
- when to submit your first VAT Return and payment
- your ‘effective date of registration’ – this is the date you went over the threshold, or the date you asked to register if it was voluntary
Your VAT responsibilities
- charge the right amount of VAT
- pay any VAT due to HMRC
- submit VAT Returns
- keep VAT records and a VAT account
You can also reclaim the VAT you’ve paid on certain purchases made before you registered
While you wait
You can’t charge or show VAT on your invoices until you get your VAT number. However, you’ll still have to pay the VAT to HMRC for this period.
You should increase your prices to allow for this and tell your customers why. Once you’ve got your VAT number you can then reissue the invoices showing the VAT
When to register
You must register when you go over the threshold, or know that you will. The threshold is based on your VAT taxable turnover – the total of everything sold that isn’t VAT exempt
- your VAT taxable turnover is more than £82,000 (the ‘threshold’) in a 12 month period
- you receive goods in the UK from the EU worth more than £82,000
- you expect to go over the threshold in a single 30 day period
There’s no threshold if neither you nor your business is based in the UK. You must register as soon as you supply any goods and services to the UK (or if you expect to in the next 30 days).
You may have to register for VAT if you take over a business that’s already registered.
You must register within 30 days of your business turnover exceeding the threshold. If you register late, you must pay what you owe from when you should have registered.