Registering for VAT
In this section:
- When you must register for VAT and when you can choose to register
- How to register for VAT
- Register for VAT or file your VAT return online
- VAT registration when you take over a business
- Registering for VAT as a group, division or joint venture
- Appointing someone to deal with your VAT affairs
- What happens if you register for VAT late?
- How long it takes to be registered and what to do in the meantime
- Reclaiming VAT on purchases made before VAT registration
Registering for VAT as a group, division or joint venture
It is the 'person', not the business, who is registered for VAT. Each registration covers all the business activities of the registered person. A person can be either an individual or a legal person or entity such as a limited company. If two people intend to work together on a business or a project as a joint venture, the joint venture may have to register for VAT if the turnover is above the relevant threshold.
Some related companies or limited liability partnerships can register as a single taxable person - a VAT group. Some unincorporated business units may be able to register as VAT divisions. This guide explains how to register these legal entities for VAT and what to do if they have to be modified after registration.
On this page:
- VAT registered person explained
- Joint ventures and VAT
- Group VAT registration
- How to register a group for VAT
- Adding or removing companies from the group
- VAT registration for divisions or business units
- How to register business units or divisions for VAT
- More useful links
VAT registered person explained
It is the person, not the business, who is registered for VAT. A person can be either an individual or a legal person or entity. A registered person might be:
- a sole proprietor
- a partnership or limited liability partnership
- a limited company
- a club
- an association
- a charity
Each VAT registration covers all the business activities of the registered person.
Find information about when you must register for VAT
Find out about what happens if you are late in registering for VAT
Joint ventures and VAT
If you and another person intend to work together on a business or project as a joint venture, HM Revenue & Customs (HMRC) may consider this as a partnership. This would be a new and separate person for VAT registration purposes. The joint venture may have to register for VAT if its turnover is above the relevant threshold.
Get information on when to register for VAT
Group VAT registration
Two or more companies or limited liability partnerships - known as 'corporate bodies' - may register as a single taxable person - or VAT group - if they meet the following criteria:
- each body has its principal or registered office in the UK
- they are under common control for example one or more company is a subsidiary of a parent company
If the turnover of your group of companies is over £10 million per year and the group is partly owned or managed by a third party, you can only register as a group for VAT if:
- no more than 50 per cent of benefits generated by the business go to third parties
- your group uses consolidated accounting
- no third party consolidates your group into its accounts
A VAT group is treated in the same way as a single company registered for VAT on its own. The registration is made in the name of the 'representative member'. The representative member is responsible for completing and submitting a single VAT return and making VAT payments or receiving VAT refunds on behalf of the group.
However, all the group companies remain jointly and severally liable for any VAT debts.
Advantages of group VAT registration
- You don't need to account for VAT on goods and services supplied between group members. This is especially useful if your accounting system is centralised.
- You only need to complete and submit one VAT return for the whole group.
How to register a group for VAT
You can download the application forms to register a group of companies, but the registration cannot currently be completed online. The forms must be printed out for completion, and then sent to this address:
HM Revenue & Customs
Imperial House
77 Victoria Street
Grimsby
DN31 1DB
Find out about how to register for VAT
Find the application form VAT 50 for VAT group treatment
Find the company details form VAT 51 to be used with an application for VAT group treatment
More about group and divisional registration in VAT Notice 700/02
Your application for VAT group registration may be refused if HMRC decides that:
- you do not meet the eligibility criteria
- your group VAT registration would result in VAT avoidance or significantly decreased VAT paid
Adding or removing companies from the group
Once you are registered as a group, you can make following changes to the group:
- add additional members to an existing group
- remove members from an existing group
- change the representative member
- disband the group
You can download the application forms to change a group of companies, but the registration cannot currently be completed online. The forms must be printed out for completion, and then sent to:
HM Revenue & Customs
Imperial House
77 Victoria Street
Grimsby
DN31 1DB
Get form VAT 56 application to change the representative member of a VAT group
Find the application form VAT 50 to change or disband the VAT group
Get Notice 700/2 Group and divisional registration
Adding an acquired company to the VAT group
If you buy a business as a going concern which becomes part of the group, you may have to account for VAT on the purchase if that business will only be supplying goods or services to other companies in the group.
Find more information about VAT when you buy a business
More about transferring your business as a going concern in VAT Notice 700/09
VAT registration for divisions or business units
A company or other corporate body with business units or divisions that are not limited companies may be able to register each of them separately for VAT. Each unit or division would have its own VAT registration number and each must account separately for VAT.
Even though each division would be VAT registered separately, the corporate body is still a single taxable person and remains liable for the VAT debts of all the divisions.
You cannot combine divisional VAT registration and group VAT registration.
For the purposes of divisional VAT registration, a corporate body is trading in divisions if it:
- has two or more branches, sites or departments which carry out different functions or trade in different geographical areas
- each branch has its own independent accounting systems
In addition your company or other corporate body may only be approved for divisional VAT registration if:
- all divisions are registered, even those whose turnover does not exceed the VAT registration threshold
- the whole corporate body is fully taxable, eg, no exempt sales
Find information about VAT registration thresholds
Find information about exempt and part-exempt businesses
How to register business units or divisions for VAT
To register divisions or business units of your company or other corporate body for VAT you need to:
- complete a VAT 1 form for each division or business unit
- explain in detail in a letter why it is difficult for you to submit a single VAT return for the company or other corporate body
- provide evidence that your company or other corporate body is incorporated, eg, incorporation certificates
You can download the application forms to register your business units or divisions for VAT, but the registration cannot currently be completed online. The forms must be printed out for completion, and then sent to the relevant VAT office together with your supporting documentation to:
HM Revenue & Customs
Deansgate
62-70 Tettenhall Road
Wolverhampton
WV1 4TZ
Get
form VAT 1 to apply for VAT registration and see guidance notes on completing
it
More about group and divisional registration in VAT Notice 700/02
More useful links
More about if you need to register for VAT in VAT Notice 700/1
More about whether you should be registered for VAT in VAT Notice 700
