You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover is more than £85,000.
This guide is also available in Welsh (Cymraeg).
When you register, you’ll be sent a VAT registration certificate. This confirms:
- your VAT number
- when to submit your first VAT Return and payment
- your ‘effective date of registration’ - this depends on the date you went over the threshold, or is the date you asked to register if it was voluntary
You can register voluntarily if your turnover is less than £85,000, unless everything you sell is exempt. You’ll have certain responsibilities if you register for VAT.
You can reclaim the VAT you’ve paid on certain purchases made before you registered.
Your VAT responsibilities
From your effective date of registration you must:
- charge the right amount of VAT
- pay any VAT due to HMRC
- submit VAT Returns
- keep VAT records and a VAT account
Most VAT registered businesses that earn over £85,000 must also follow the rules for ‘Making Tax Digital for VAT’.
While you wait
You cannot 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.