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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:
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:
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
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
Two or more companies or limited liability partnerships - known as 'bodies corporate ' - may register as a single taxable person - or VAT group - if they meet the following criteria:
If the turnover of the VAT group 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:
A VAT group is treated in the same way as a single taxable person 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 members of the group remain jointly and severally liable for any VAT debts.
If you want your accountant to register a VAT group, or make changes to an existing group on your behalf, you must inform HMRC of this using form VAT 53.
Read more about appointing someone to deal with your VAT affairs
You can use HMRC's online services to register your group for VAT. You must download forms VAT 50 and VAT 51, complete them online and then attach them to your application. If you are applying online you cannot send forms VAT 50 and VAT 51 through the post.
Log in to HMRC Online Services to register a group for VAT
You can also apply to register a group for VAT by post. You should print out forms VAT1, VAT50 and VAT 51 for completion and post them to HMRC.
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
Your application for VAT group registration may be refused if HMRC decides that:
Find out about how to register for VAT
Read more about group and divisional registration in VAT Notice 700/02
Once you are registered as a group, you can make the following changes to the group:
If you need to disband your VAT group, you can do this online.
Log in to HMRC Online Services to disband a group
For all other changes to your group's makeup, you must complete the application forms and send them to HMRC by post.
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
Read more about Group and divisional registration in Notice 700/2
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.
Read more about transferring your business as a going concern in VAT Notice 700/09
If you want your accountant to register a VAT group, or make changes to an existing group on your behalf, you must inform HMRC of this using form VAT 53.
Read more about appointing someone to deal with your VAT affairs
A body corporate 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 body corporate is still a single taxable person and remains liable for any VAT debts of all the divisions.
You cannot combine divisional VAT registration and VAT group registration.
For the purposes of divisional VAT registration, a body corporate is trading in divisions if:
In addition bodies corporate may only be approved for divisional VAT registration if:
Find information about VAT registration thresholds
Find information about exempt and part-exempt businesses
Read more about bodies corporate in VAT Information Sheet 07/04
To register divisions or business units of your company for VAT you need to:
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 with your supporting documentation to HMRC.
Get form VAT 1 to apply for VAT registration and see guidance notes on completing it
Read more about group and divisional registration in VAT Notice 700/02
Read more about if you need to register for VAT in VAT Notice 700/1
Read more about whether you should be registered for VAT in VAT Notice 700
