VAT Registration

1. Who needs to register for VAT?

  • You must register for VAT with HM Revenue and Customs (HMRC) if your business’s VAT taxable turnover is more than £83,000 (the ‘threshold’) in a 12-month period. You can register voluntarily if your turnover is less than £83,000, unless everything you sell is exempt.
  • There’s no threshold if neither you nor your business is based in the UK (Non-established taxable persons, NETPs). You must register as soon as you supply any goods or services to the UK. This term applies to most of the Chinese ecommerce.

  • 2. What is VAT taxable turnover?

    VAT taxable turnover is the total value of everything you sell that isn’t exempt from VAT in a consecutive 12-month period. The current threshold for VAT taxable turnover is £83,000, you must register within 30 days of your business turnover exceeding the threshold. When the goods or services supplied by your business has a rate of VAT that is 0% or greater (5%, 20% etc.), then those values are taxable turnover. However, you can apply for Exempt VAT if anything you sell is exempt. Please seek further advice from our Professional Accountants team.

    3. What do I need to register a VAT number?

  • National Insurance (NI) Number
  • Certificate of Incorporation (Business Name, Address, Contact Details)
  • Business Activity (last two years)
  • Bank Details

  • 4. When can I receive my VAT number after registered with HMRC?

    You should get a VAT registration certificate within 14 working days, though it can take longer.

    5. When do I need to start paying VAT?

    VAT calculation starts from the date you registered with HMRC, usually you need to declare and pay quarterly. Our Professional Accountants team will assist you with the VAT calculation and declaration.


    The above information and calculations are for illustrative purposes only. No liability is accepted by O’Brien S & Co Ltd for any actions or losses from investment in reliance on the information and calculations. Consult a qualified professional financial advisor before making any financial decisions. O’Brien S & Co Ltd holds the copyrights in all materials on the website. All rights reserved.

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