How to register for VAT: a step-by-step guide

1. Check whether you need to register

This guide covers a typical UK-established sole trader, partnership or limited company. Overseas businesses, business transfers and some Northern Ireland transactions need additional checks.

The VAT registration threshold is £90,000. There are two tests:

• Your taxable turnover has exceeded £90,000 over the previous 12 months.
• You expect taxable turnover to exceed £90,000 in the next 30 days alone.

Taxable turnover includes sales taxed at 20%, 5% and 0%. Exempt and out-of-scope sales are excluded. Use sales before expenses; profit is not the figure to check. Some reverse-charge transactions also count.

At each month-end, total the previous 12 months' taxable turnover. A business trading for less than a year checks the period since it started. You do not wait for your accounting year-end or the end of the tax year.

Use your sales records, invoices and credit notes to prepare the calculation. If you have several trades as the same sole trader, check their combined taxable turnover. Ask for advice if you sell overseas or are unsure whether a sale is exempt or zero-rated.

If you only exceed the threshold temporarily, an exception may be available, but HMRC must approve it. Check HMRC's registration rules.

2. Work out your deadline and VAT start date

Your effective date of registration is the date from which you must account for VAT. Record it separately from the application deadline.

For example, if your rolling turnover first exceeds £90,000 in August, apply by 30 September. Your VAT start date is 1 October.

Registering late can leave you owing VAT from the date you should have registered, even if you did not collect it from customers. HMRC explains the deadlines and late registration rules.

3. Consider voluntary registration if you are below the threshold

You can apply voluntarily if you make, or intend to make, taxable supplies. Compare the VAT you could recover on purchases with the effect on customer prices and the cost of keeping records and filing returns.

Prepare two versions of a typical month's figures: one using your current prices and costs, and one with VAT registration. Check whether customers can reclaim VAT and whether your contracts allow VAT to be added to agreed prices.

Choose a voluntary start date carefully. Backdating creates VAT obligations on earlier taxable sales as well as possible recovery on purchases. HMRC's guidance says you cannot change the voluntary start date once registered. Read the voluntary registration guidance.

4. Gather your details before opening the application

Prepare a folder containing:

• Legal business name, trading name, address and contact details.
• Business activity and trading start date.
• Turnover calculation, forecast for the next 12 months and proposed VAT start date.
• Business bank details.
• Relevant tax references and identity information.

For a limited company, have the company number and Corporation Tax Unique Taxpayer Reference (UTR) ready. For an individual or partnership, HMRC lists a National Insurance number, identity document and UTR if you have one. Additional tax or identity checks depend on your circumstances. Check HMRC's application checklist.

Match the application to the legal business making the sales. If you trade through a limited company, use that company's details. Keep a note explaining your turnover forecast so you can answer questions about it later.

5. Sign in through GOV.UK

Open HMRC's VAT registration page and use its start link. You can create sign-in details if needed and save an unfinished application.

Before creating another account, check the sign-in details you already use for this business. Keep the login, recovery email and security access under your control. If an accountant applies through their agent account, your own business tax account remains separate.

Your HMRC business tax account lets you manage taxes, view messages and add or change an agent.

6. Complete and check the application

Follow the questions shown for your business type. Keep your prepared records beside you, and check each answer against them.

Before submitting, review:

• Legal name, company number and tax references.
• Reason for registering and effective date.
• Past turnover and forecast turnover.
• Business description, bank details and correspondence address.
• Any VAT scheme choices.

Describe what you actually sell. For example, a construction business should explain the type of work it does rather than entering only "services".

Consider a VAT scheme separately from the decision to register. Cash Accounting, Annual Accounting and the Flat Rate Scheme have different eligibility rules and calculations. Compare them with your expected sales and costs before choosing. Check HMRC's scheme thresholds.

Save the submitted answers, acknowledgement and any application reference. These will help if HMRC asks you to explain or correct something.

7. Handle HMRC questions and plan for the waiting period

Check the email address and postal address used in the application. If HMRC asks for more information, answer the specific questions and retain copies of what you send. Processing can take longer when further checks are needed. Use HMRC's reply checker for current information.

You must account for VAT from your effective date, even while waiting for your number. Until it arrives, do not show VAT separately on invoices. You can adjust prices to cover the VAT due, then reissue the relevant invoices after receiving the number. HMRC explains invoicing while you wait.

Discuss the price change with customers before invoicing. Keep a list of invoices that need reissuing so none are missed.

8. Add VAT to your business tax account

When HMRC confirms the registration, check your VAT number, effective date and first return information. Keep the confirmation with your business records.

Sign in to your business tax account. If VAT is not already available, use the option to add a tax or service, select VAT and follow the instructions. Have HMRC's registration confirmation beside you to answer any matching questions.

Check that you can see the correct business and VAT service. Save the first return and payment deadlines in your calendar. Complete any requested agent authorisation if an accountant will act for you.

9. Set up your accounting software and invoices

HMRC signs registered businesses up for Making Tax Digital for VAT unless exempt. You still need to configure and authorise compatible software. Check the VAT and Making Tax Digital requirements.

In your software:

1. Open the VAT or tax settings.
2. Enter the VAT number and effective date from HMRC's confirmation.
3. Select the agreed VAT accounting method or scheme.
4. Check the first return period against HMRC's records.
5. Use the software's HMRC connection option and complete the authorisation.
6. Confirm that it retrieves the correct VAT obligations.

Menu names vary between products. Follow your provider's instructions and check the settings before entering or importing transactions.

Update invoice templates with your VAT number and the required VAT information. Check the rate for each product or service; 20% does not apply to every sale. Review a sample invoice and any transactions around the registration date before sending invoices in bulk. HMRC's charging guidance explains the rates and invoice treatment.

10. Check purchases made before registration

You may be able to recover VAT on qualifying goods bought within four years that you still hold, and qualifying services bought within six months before registration. The purchases must relate to the registered business's taxable activities, and you need supporting VAT invoices. Private use and exempt activities can restrict recovery. Read HMRC's pre-registration purchase rules.

Prepare a list showing supplier, invoice date, net amount, VAT and business use. For goods, note whether you still hold them at registration. Have the claim checked before including it in your first return.

11. Prepare for the first return and payment

VAT returns are usually quarterly. The usual online filing and payment deadline is one calendar month and seven days after the period ends. You must file even when there is no VAT to pay or reclaim. Check HMRC's return deadlines.

Use the actual period and deadline shown in your account. Keep bookkeeping current, reconcile your bank transactions and review the VAT report before filing. Set aside funds for the bill and allow enough time for payment to reach HMRC.

Registration is complete when you have checked the confirmation, can access VAT online, have configured your software and know what to do for the first return.

Related guides

Rates and deadlines can change. Use the official links below to check what applies to you.