How to register for VAT: complete guide

Even when using the best accounting software, the process of registering for value-added tax (VAT) for the first time can be confusing. Certain timescales might also worry you if you feel your registration is overdue.

That’s why it’s worth understanding the steps involved in VAT  registration so you can proceed with confidence.

Registering for VAT is essential if your business’s taxable turnover exceeds the 2025 taxable turnover, which is currently £90,000.

If you think you will need to get registered for VAT soon – or if you are just curious about the process for the future – then this article will help you gain the confidence you need to get started, avoid the common mistakes that may disrupt your business, and cover everything you need to know to register successfully.

How much does it cost to register for VAT?

There is no cost to register for VAT. The whole process is free on the HMRC website.

However, when it comes to filing your VAT return, there are optional methods that can increase your costs. For example, if you wish to contract an accountant to complete your return, you’ll be paying for their professional services.

Alternatively, if you want to file your VAT return yourself, it’s helpful to use some good quality accounting software.

Either way, these methods will ensure you are compliant with the Making Tax Digital (MTD) legislation, which requires UK businesses to keep digital records of their VAT accounting.

What documents do you need to become VAT registered?

When registering for VAT, you’ll either need to register as a limited company or as an individual/partnership. Here’s a quick rundown of both.

Documents you’ll need as a limited company

To register as a limited company, you will need:

• Your company registration number
• Your business’s bank account details
• Your Unique Taxpayer Reference (UTR)
• Details of your annual turnover
• An estimate of your taxable turnover for the next 12 months
• Information on your Self-Assessment tax return
• Details about your corporation tax
• Information on Pay As You Earn (PAYE)

Documents you’ll need as an individual/partnership

To register as an individual (e.g. sole trader) or partnership, you will need:

• Your National Insurance (NI) number
• An identification document (e.g. passport or driver’s licence)
• Your bank account details
• Your UTR (if you have one)
• Details of your annual turnover
• An estimate of your taxable turnover for the next 12 months
• Information on your Self-Assessment tax return
• Details of your payslip and P60

Can you register for VAT with a paper form?

You can register for VAT with a paper VAT1 form, which you’ll need to request from HMRC.

Paper registrations are allowed when:

• You need to apply for a registration exception
• You’re registering several divisions or business units under different VAT numbers
• You’re joining the Agricultural Flat Rate Scheme

However, even if you begin this process with a paper form, you’ll have to head online to complete it.

All newly VAT-registered businesses are required to submit their VAT returns and any VAT payments electronically. HMRC is paperless in this regard. This has been the case since April 1 2012, when it was extended to virtually all VAT-registered businesses, not just newly registered ones.

How to register for VAT in three steps

All UK business owners can register for VAT online at HMRC’s website.

If you are in a partnership, your nominated partner can use HMRC’s online system to register, as long as you are using one VAT number.

Here’s what you need to do, step-by-step.

1. Register with HMRC Online Services or Government Gateway

These are where you can register for VAT, as well as other services.

To create a new Government Gateway account, go to HMRC’s login page and select Create sign-in details. From there, you’ll need to provide your contact details, such as your email address.

After you’ve created your account, you’ll receive a 12-digit activation code within 10 days of enrolling (or up to 21 days if you live abroad).

2. Log in to your account

Once you’ve received your activation code, you’ll be able to log in with it to your private VAT dashboard.

Here, you can view your VAT status, manage your account, track your records, see your upcoming important deadlines and dates, as well as apply for and view your VAT certificate online once you receive it.

3. Apply for your VAT Certificate Of Registration

A VAT certificate (also known as VAT4) is an incredibly important document that HMRC provides to confirm that your business is officially registered for VAT. The certificate includes several important information, including your unique VAT number and your date of registration.

To access this certificate, log in to your Government Gateway account. From there, select View your VAT account and then View VAT certificate. You’ll then be able to see your VAT details displayed, as well as options to either print a copy or download it as a PDF.

What should you do after you receive your VAT certificate?

Once your VAT certificate has come through, you can take the next steps in registering with HMRC online. To do this, you’ll need the following three pieces of information about your business:

• Your VAT registration number
• The postcode of your principal place of business (if you’re an overseas business, you can use postcode AB10 1ZP – which is valid for persons with no place of business in the UK.)
• Your effective date of registration for VAT

You will be able to find these three pieces of information on your VAT certificate.

You’ll also be prompted to add the final month of the last VAT return you submitted, and your “Box 5” figure (which would be your VAT due minus any instalments you’ve already made for the period). However, the answers to both of these would be “N/A” or 0.00 if the business has just been newly VAT-registered.

Will I receive confirmation of VAT registration?

There’s no official email confirmation sent from HMRC. However, if you’re using accounting software, you should be notified of completion. 

Once you have your certificate and can access your account to send your VAT returns annually, you’ll know that you’ve completed the process.

The only thing you will have to remember after this point is to send in your VAT returns annually. Therefore, you should make sure to check your VAT return submission and payment deadlines within your HMRC online account, so that you don’t miss any important dates.

Can you reclaim VAT on purchases made before registering?

Once the business is VAT-registered, you may be able to recover some previous VAT you’ve incurred. However, the time limits and conditions differ depending on whether you’re dealing with goods or services.

Reclaiming goods

You can reclaim VAT on goods you bought or imported up to four years before you were registered if all of the following apply to the goods:

• They were bought by you as the entity that is now registered for VAT
• They are for your VAT taxable business purposes
• They are still held by you, or they have been used to make other goods you still hold

HMRC recommends that you record the transactions like any other present-day transaction. It is also suggested that you keep details of stock-take, usage and expiration.

Reclaiming services

You can reclaim VAT on services you bought during the six months before you registered for VAT if both of the following are true:

• The services were bought by you as the entity that is now registered for VAT
• The services were for your VAT taxable business purposes

Both goods and services are expected to have VAT invoices, and the VAT element recovered will be based on the amount shown on the invoices, not on the current rates of VAT.

Conclusion

Registering for VAT is crucial if your taxable turnover reaches £90,000, or you risk facing penalties.

Fortunately, registration doesn’t have to be a complicated task. It’s just a matter of providing the right information, staying up to date with key deadlines, and keeping a record of your relevant expenses.

And thanks to the many choices of good-quality accounting software out there, staying on top of VAT is easier than ever. It automatically calculates VAT on sales and purchases, applies the correct VAT rate based on product/service, and makes your business compliant with MTD regulations.

Don’t forget to check out our top choices for the best free accounting software, so you can choose the right fit for your business.