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VAT Registration - What is VAT Registration?

Definition: VAT Registration is the process of listing with the government as a company eligible for the return of VAT.

You can only register for VAT if you are in business. This is defined as a continuing activity of providing goods or services and getting paid for this.

VAT Registration threshold

As of August 2012, there is a current VAT registration threshold of £77,000. Therefore, if the turnover of your business supplying VAT taxable goods and services within the UK for the previous 12 months is more than £77,000 (or the current registration threshold), or if you expect it to go over that figure in the next 30 days alone, you must register for VAT.

However, if your turnover has gone over the registration threshold temporarily then you may be able to apply for exception from registration. To keep well informed with all the latest VAT regulations please go to the HMRC’s website.

After Registration

Once you are VAT registered you will need to complete a VAT Return and enter the details online to HMRC. This is normally completed once a quarter showing how much VAT you have charged out (Output VAT) on your sales invoices and how much VAT has been charged in (Input VAT) with your supplier invoices. For more information about how to complete your VAT Return go to the HMRC’s website.