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VAT in UK and its Registration

In the United Kingdom, the prices of products and services include an additional tax known as value-added tax (VAT). It is one of the most significant taxes in the nation, and as such, it is subject to a number of stringent rules and regulations.

In this blog post, we will go through the fundamentals of VAT as well as the procedure for registering for it in the UK.

What is VAT?

In the UK, the price of products and services includes a tax known as VAT, which was introduced in 1973.

The final consumer is the one who is responsible for paying the tax; nevertheless,

The tax is collected by the firms that sell the item or service in question and then paid over to the government.

Different Types of VAT Rates?


Rate of Charge

Goods / Services Covered



Maximum Goods & Services Covered



Goods such as kid's car seats, Home Energy, Property conversion related to Residential property, etc.



Necessity goods such as food, children's clothes, etc.

Not all transactions are subject to value-added tax; others are free from it entirely. Insurance, healthcare, stamps, and tuition are only some examples of things that are exempt from this rule. There is no value-added tax (VAT) in the United Kingdom on governmental payments, purchases made outside the country, or on charitable contributions.

Who needs to register for VAT?

  • Companies are required to register for value-added tax if their annual taxable sales total more than £85,000 before the end of the tax year.

  • Any sales revenue that does not qualify for an exemption from Value Added Tax is considered a taxable sale.

  • Turnover is still taxable even if the VAT rate is 0 or Zero.

  • In short, exempt sales and zero-rated sales are not the same.

  • This comprises firms that sell goods or services, as well as businesses that are situated outside of the UK but offer goods or services to clients in the UK.

  • Businesses that sell goods or services to customers in the UK are included in this category.

  • Companies may still make the decision to register voluntarily for VAT.

  • Beneficial for them if they make a significant number of purchases of goods and services that have VAT added to their price of them.

How to register for VAT

Businesses in the UK that want to get VAT registered are required to submit an online application through the HMRC website.

In order to process your application, we will need some fundamental information about your company, such as its name, address, and annual revenue.

After the application has been processed in its entirety, the HMRC will conduct an examination of it.

The HMRC will then provide a certificate of VAT registration to the company.

VAT Returns

Once the firm has been registered for VAT, the VAT rate must be applied to all of the company's products and services.

The company must file regular VAT returns with HMRC.

Depending on the size of the company, VAT returns must be submitted on a monthly, quarterly, or annual basis.

How to Check if a company is VAT Registered?

The UK government provides a VAT number checker tool on the GOV.UK website. This tool allows you to check the validity of a VAT number and confirm whether a company is registered for VAT in the UK. Simply enter the company's VAT number and click "Verify".

Further, you can call the VAT Helpline for HMRC on 0300 200 3700 and ask them to check the VAT registration status of a company. You will need to provide the company's name and address.


Businesses in the UK are required to have a solid understanding of and comply with the Value Added Tax (VAT), which is a significant tax. Although the registration procedure is simple, it is essential for businesses to ensure that they satisfy all of the requirements for registration as well as adhere to all of the rules and regulations that pertain to VAT. Businesses can avoid penalties and guarantee that they are paying the tax system in the United Kingdom in a responsible manner if they follow these steps.

Need Expert Advice?

Punchhole has an expert team to help you get the VAT Registration as well as file its returns regularly.


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