GlossaryUK
What is VAT registration?
Registering with HMRC for Value Added Tax
Short answer
VAT registration is how a UK business registers with HMRC so it can charge VAT on its sales and file VAT returns. It is compulsory once taxable turnover goes over the threshold, and voluntary registration below it is possible.
Explained
Registration becomes compulsory when total taxable turnover for the last 12 months goes over the threshold, or when it is expected to go over it in the next 30 days. You have 30 days from the end of the month you went over the threshold to register; registering late means paying VAT on sales since the date you should have registered, and a penalty may apply.
Businesses not established in the UK (non-established taxable persons) do not get the threshold: if they supply goods or services in the UK, they must register whatever their turnover. Whether a company counts as established in the UK is decided under HMRC’s rules.
Good to know
- VAT-registered businesses keep some records digitally and file with compatible software under Making Tax Digital.
- The threshold changes over time; check HMRC for the current amount.
- HMRC makes the final decision on VAT status, exceptions and exemptions.
This page is general information, not legal or tax advice. Rules change; check the official source for the latest position or talk to us.
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