UK VAT registration: do you need to register, and from when?

For UK businesses and overseas sellers: check the £90,000 VAT threshold, the 12-month and 30-day tests, deadlines, exceptions and voluntary registration.

UK VAT registration: do you need to register, and from when?WHO YOU ARETHE TWO TESTSREGISTER AND START CHARGINGNoNoYesYesYesNoYesNoNoNoYesYesYesNoYesNoYesNoBusiness owner checks VATregistrationFor UK businesses and overseassellers: decide if you must registerfor UK VAT, by when, and from whatdate.Thresholds here apply from 1 April2024: £90,000 to register, £88,000to deregister. Check gov.uk for thecurrent figures.Is the businessestablished in theUK?Do you make, or expect tomake, taxable supplies in theUK?Non-established taxable persons(NETPs) have no registrationthreshold. Supplies of any valuecount.No UK VAT registrationneeded for nowRegister as anon-established businesswithin 30 daysTell HMRC within 30 days if you maketaxable supplies in the UK or expectto in the next 30 days.If all your UK sales are zero-rated,you may be able to apply forexemption from registration.Register with HMRC. Get UKVAT advice on overseas rulesWork out your taxableturnoverTaxable turnover is everything yousell that is not VAT exempt or out ofscope, including zero-rated andreduced-rated sales.Leave out sales of capital assetssuch as buildings, equipment orvehicles, and exempt supplies.Are all your suppliesVAT exempt?You cannot register for VATHMRC guidance says that if all yoursupplies are exempt, you will not beable to register for VAT.Some or all supplies aretaxableDo you expect taxableturnover over £90,000 in thenext 30 days alone?This is the future test. It is about thenext 30 days on their own, not addedto past months. A single largecontract can trigger it.Register by the end of that30-day periodYour effective date of registration isthe date you realised you would goover, not the date turnover passed£90,000.Example from gov.uk: you sign a£100,000 contract on 1 May. Registerby 30 May. Your effective date is 1May.Check the past 12 monthsWas taxable turnover over£90,000 in the last 12months?This is the historic test. Check it atthe end of every month, looking backover a rolling 12 months, not the taxyear.Do you want to registervoluntarily?You can register voluntarily belowthe threshold. Once registered, youmust charge VAT on your taxablesales.Voluntary registration can bebackdated up to 4 years.No need to register. Keepchecking each monthIs the rise only temporary?You can apply for an exception if youcan show taxable turnover will not goover the deregistration threshold(£88,000) in the next 12 months.Apply to HMRC for anexception from registrationThe exception is not automatic. Youmust apply. Exception requests goon paper form VAT1, not online.Did HMRC grant theexception?Exception granted. Keepmonitoring turnoverRegister within 30 days ofthe month end you wentoverRegister within 30 days of the end ofthe month when you went over thethreshold.Effective date is the first day of thesecond month after you went over.Example: over on 15 July, register by30 August, effective 1 September.Register online with HMRCYou can usually register online. Youcan appoint an accountant or agentto deal with HMRC for you.HMRC sends a 9-digit VATregistration number. Put it on all yourinvoices.Charge VAT from youreffective date of registrationIf you register late, you must pay VATon sales made since the date youshould have registered, and you mayget a penalty.Unsure about thedates or whatcounts as taxable?Check with HMRC or a VATadviserRegistered for VATLater, if taxable turnover falls below£88,000, you can ask HMRC tocancel your registration.You must cancel within 30 days ifyou stop making taxable supplies orjoin a VAT group.

Who you are

  1. Business owner checks VAT registrationOwner

    For UK businesses and overseas sellers: decide if you must register for UK VAT, by when, and from what date.

    Thresholds here apply from 1 April 2024: £90,000 to register, £88,000 to deregister. Check gov.uk for the current figures.

  2. Is the business established in the UK?Owner
  3. Do you make, or expect to make, taxable supplies in the UK?Owner

    Non-established taxable persons (NETPs) have no registration threshold. Supplies of any value count.

  4. No UK VAT registration needed for nowOwner
  5. Register as a non-established business within 30 daysOwner

    Tell HMRC within 30 days if you make taxable supplies in the UK or expect to in the next 30 days.

    If all your UK sales are zero-rated, you may be able to apply for exemption from registration.

  6. Register with HMRC. Get UK VAT advice on overseas rulesOwner
  7. Work out your taxable turnoverOwner

    Taxable turnover is everything you sell that is not VAT exempt or out of scope, including zero-rated and reduced-rated sales.

    Leave out sales of capital assets such as buildings, equipment or vehicles, and exempt supplies.

  8. Are all your supplies VAT exempt?Owner
  9. You cannot register for VATOwner

    HMRC guidance says that if all your supplies are exempt, you will not be able to register for VAT.

  10. Some or all supplies are taxableOwner

The two tests

  1. Do you expect taxable turnover over £90,000 in the next 30 days alone?Owner

    This is the future test. It is about the next 30 days on their own, not added to past months. A single large contract can trigger it.

  2. Register by the end of that 30-day periodOwner

    Your effective date of registration is the date you realised you would go over, not the date turnover passed £90,000.

    Example from gov.uk: you sign a £100,000 contract on 1 May. Register by 30 May. Your effective date is 1 May.

    Then go to step 22, Register online with HMRC

  3. Check the past 12 monthsOwner
  4. Was taxable turnover over £90,000 in the last 12 months?Owner

    This is the historic test. Check it at the end of every month, looking back over a rolling 12 months, not the tax year.

  5. Do you want to register voluntarily?Owner

    You can register voluntarily below the threshold. Once registered, you must charge VAT on your taxable sales.

    Voluntary registration can be backdated up to 4 years.

  6. No need to register. Keep checking each monthOwner
  7. Is the rise only temporary?Owner

    You can apply for an exception if you can show taxable turnover will not go over the deregistration threshold (£88,000) in the next 12 months.

  8. Apply to HMRC for an exception from registrationOwner

    The exception is not automatic. You must apply. Exception requests go on paper form VAT1, not online.

  9. Did HMRC grant the exception?Owner
  10. Exception granted. Keep monitoring turnoverOwner
  11. Register within 30 days of the month end you went overOwner

    Register within 30 days of the end of the month when you went over the threshold.

    Effective date is the first day of the second month after you went over. Example: over on 15 July, register by 30 August, effective 1 September.

Register and start charging

  1. Register online with HMRCOwner

    You can usually register online. You can appoint an accountant or agent to deal with HMRC for you.

    HMRC sends a 9-digit VAT registration number. Put it on all your invoices.

  2. Charge VAT from your effective date of registrationOwner

    If you register late, you must pay VAT on sales made since the date you should have registered, and you may get a penalty.

  3. Unsure about the dates or what counts as taxable?Owner
  4. Check with HMRC or a VAT adviserOwner
  5. Registered for VATOwner

    Later, if taxable turnover falls below £88,000, you can ask HMRC to cancel your registration.

    You must cancel within 30 days if you stop making taxable supplies or join a VAT group.

Outcomes

No UK VAT registration needed for now

You get here from step 3, Do you make, or expect to make, taxable supplies in the UK? (No).

Register with HMRC. Get UK VAT advice on overseas rules

You get here from step 5, Register as a non-established business within 30 days.

You cannot register for VAT

HMRC guidance says that if all your supplies are exempt, you will not be able to register for VAT.

You get here from step 8, Are all your supplies VAT exempt? (Yes).

No need to register. Keep checking each month

You get here from step 15, Do you want to register voluntarily? (No).

Exception granted. Keep monitoring turnover

You get here from step 19, Did HMRC grant the exception? (Yes).

Check with HMRC or a VAT adviser

You get here from step 24, Unsure about the dates or what counts as taxable? (Yes).

Registered for VAT

Later, if taxable turnover falls below £88,000, you can ask HMRC to cancel your registration.

You must cancel within 30 days if you stop making taxable supplies or join a VAT group.

You get here from step 24, Unsure about the dates or what counts as taxable? (No).