How to Register for VAT

Registering for VAT is something most UK businesses will need to do once their taxable turnover reaches a certain threshold, or when they choose to register voluntarily. The good news is that the process is straightforward for most businesses and can usually be completed online in around 20 minutes, though some organisations will need to register by post instead.

Who needs to register for VAT

You must register for VAT if your business's taxable turnover exceeds the VAT registration threshold. You can also choose to register voluntarily even if your turnover is below this level.

Once registered, you'll be able to charge VAT on your sales, reclaim VAT on your business purchases, and you'll need to submit regular VAT returns to HMRC.

Registering for VAT online

Most businesses should register for VAT online. This is the quickest method and is suitable for:

• Sole traders
• Standard limited companies
• Partnerships registering under one VAT number
• Groups of companies registering under one VAT number

The online service is the default method HMRC expects businesses to use, and it processes applications faster than postal applications.

When you need to register by post

Some businesses cannot use the online service and must register using paper form VAT1 instead. You'll need to register by post if you are:

• A limited liability partnership (LLP) registering as a representative member of a VAT group
• Registering the divisions or business units of a corporate body under separate VAT numbers
• An overseas partnership applying to register
• A local authority, parish or district council
• Applying for a registration exception
• An insolvency practitioner applying to register a business

HMRC will also accept postal applications if you cannot use the online service because of your age, health condition, disability or location, if you object to using computers on religious grounds, or if you do not have access to the internet. They may consider other reasons on a case-by-case basis.

How to register by post

The process for registering by post involves several steps:

Step 1: Contact HMRC

Call HMRC using the VAT general enquiries helpline to request paper form VAT1. HMRC will ask you questions about why you need a paper form.

Step 2: Wait for your form

If HMRC agrees with your reasons for needing a postal application, they'll send form VAT1 to you. If they don't agree, they'll direct you to use the online service instead. You must only use a form that HMRC has sent to you directly.

Step 3: Complete the form

When the form arrives, fill it in carefully. HMRC provides a 16-page guidance document (VAT1 Notes) to help you complete the form correctly.

Step 4: Add any additional forms

Depending on your circumstances, you may need to include additional forms with your VAT1 application (see below).

Step 5: Post your application

Send all completed forms to HMRC using the postal address shown on form VAT1.

Additional forms you may need

Certain types of business or registration will require you to complete additional forms and submit them alongside form VAT1:

• VAT5EXC – if you're applying for an exception from registering for VAT
• VAT98 – if you're registering for the Agricultural Flat Rate Scheme
• VAT50-51 – if you're registering a group of companies with separate VAT numbers
• VAT1A – if you're an EU business distance selling to Northern Ireland
• VAT1B – if you're importing goods worth more than £90,000 into Northern Ireland from an EU country
• VAT1C – if you're disposing of assets that you've claimed directive refunds on

What information you'll need

When completing your VAT registration (whether online or by post), you'll need to provide information about your business including:

• Your business details and contact information
• The date you became or will become liable to register
• Details about your business activities
• Your estimated VAT taxable turnover
• Bank account details for any VAT repayments

The detailed notes accompanying form VAT1 provide comprehensive guidance on what information is required for postal applications.

How long registration takes

Postal applications take longer to process than online applications. If HMRC needs more information whilst processing your form, this will cause additional delays.

You can check HMRC's current processing times for VAT registration on their website to see when you can expect a reply.

After you register

Once HMRC processes your application, they'll send you:

• Your VAT registration number
• Information about your VAT accounting periods
• Details about when to submit your first VAT return

You'll then be able to start charging VAT on your sales, reclaiming VAT on eligible purchases, and you'll need to submit VAT returns to HMRC at regular intervals (usually quarterly).

Sources

• Register for VAT by post
• VAT: general enquiries
• Apply for an exception from registering for VAT
• Check when you can expect a reply from HMRC

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.