How to Register for VAT

VAT (Value Added Tax) is a tax on the consumption of goods and services. Businesses pay VAT when buying supplies and charge VAT to customers on products they sell.

A business must register for VAT when its taxable turnover exceeds the VAT threshold set by HMRC. To register, you’ll need to provide specific details based on your business’s legal structure.

Who Needs to Register for VAT?

You must register for VAT if you:

• Exceed the VAT threshold (explained below)

• Are based outside the UK or have a business based outside the UK

• Operate in Northern Ireland and deal with goods from the EU

• Supply goods or services to the UK (or expect to within 30 days)

• Take over a VAT-registered business

You can also choose to register voluntarily, even if you don’t meet the threshold. This is known as voluntary registration.

You don’t need to register if your taxable goods and services have a zero VAT rate, but you must seek HMRC approval for this exemption.

What is the VAT Threshold?

The VAT threshold for 2025 is £90,000 (up from £85,000). This change took effect on 1 April 2024.

You must register for VAT if your business’s annual taxable turnover exceeds this threshold, or if you expect it to.

Business Type	Threshold
UK Businesses	£90,000
Non-UK Businesses	£0
Distance Selling to NI and EU	€10,000
Bringing Goods into NI from EU	£90,000

To deregister for VAT, your turnover must be below £88,000.

What is a VAT Certificate?

A VAT certificate allows you to charge VAT on sales and show it on invoices. It includes:

• Your VAT number

• VAT return and payment details

• Effective VAT registration date

You’ll receive this certificate from HMRC after registering. Ensure that you keep the details up to date, such as your address and turnover, similar to how you would manage business insurance.

When Will I Get a VAT Certificate?

It can take up to 30 days to process your VAT registration and issue your certificate.

How to Get a VAT Number

Once you complete your VAT registration, you’ll receive a VAT number. You’ll use this number on invoices and can display it on your website.

When Should I Register for VAT?

You must register for VAT when:

• You expect your taxable turnover to exceed the VAT threshold within the next 30 days

• Your business’s taxable turnover has exceeded the threshold in the past 12 months

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