When do I need to register for VAT?
VAT registration in the UK is mandatory in several cases:
• if you operate in the UK – once you have exceeded a turnover of £90,000 within 12 months,
• If you don’t have a business in the UK – once your turnover exceeds £70,000 within 12 months from distance selling to the UK.
• If you sell goods in the UK without a UK establishment, using warehouses located in the UK (e.g., Amazon FBA).
Once any of these criteria are met, the deadline for registration is 30 days from the day the threshold is reached.
I don’t need to register, but I’d like to – is that possible?
Yes, in the UK, you can also voluntarily register for VAT even if you don’t meet the mandatory registration thresholds. However, keep in mind that from the date indicated in your application, you will be responsible for charging VAT on the products/services you sell unless they are VAT-exempt. The profitability of voluntary registration depends on the type of business you run.
I submitted my VAT registration application. How long will I have to wait?
The wait time for VAT numbers is typically between two and three weeks. However, if your application undergoes additional verification by HMRC, this could take longer. Verification may be triggered for various reasons, including random checks, and involves HMRC requesting additional information and/or documents to verify the details in your application.
Can I deregister from VAT?
Yes, there are situations where you can apply to deregister from VAT.
The main condition for deregistration is a turnover drop below £83,000 over the past 12 months, along with the expectation that this will not increase in the near future. Voluntary deregistration is also possible if you can prove to HMRC that even though your turnover is currently above the threshold, it will fall below it in the next year.
Deregistration is mandatory in cases such as closing your business, selling your business, changing the legal form of your business (e.g., converting from self-employment to a limited company), dissolving a VAT group, merging with other entities into a VAT group, or joining the Agricultural Flat Rate Scheme.
For those conducting distance selling from another country and delivering goods to the UK, deregistration is possible if your turnover did not exceed £70,000 in the last calendar year and will not exceed this threshold in the following year.
How long does the deregistration process take?
The time for a deregistration decision depends on the number of applications HMRC is processing at the time, so it’s difficult to determine. Until the decision is confirmed, all VAT-related obligations remain in effect for the registered entity.
Can I re-register after deregistration?
Yes, if circumstances change or if you decide that being VAT registered is more beneficial for you, you can submit a new VAT registration application.
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