VAT Registration

You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover (external link) is more than £85,000. 

When you register, you will 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 (external link). You will have certain responsibilities if you register for VAT. 

You can reclaim the VAT you have paid on certain purchases made before you registered (external link)

Your VAT Responsibilities 

From your effective date of registration (external link) you must: 

Most VAT registered businesses that earn over £85,000 must also follow the rules for ‘Making Tax Digital for VAT (external link)’. 

While You Wait 

You cannot charge or show VAT on your invoices until you get your VAT number. However, you will 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 have got your VAT number you can then reissue the invoices showing the VAT.

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