VAT registration

VAT registration in the UK (i. e. value added tax), is mandatory for companies with a turnover of more than £85,000 per year. Companies with lower turnover are not obliged to do so, but voluntary registration is possible. There can be many reasons for voluntary registration, the most common being:

* Voluntary VAT registration in the UK is particularly useful for companies that operate outside the UK. Under the intra-Community agreement, in the case of the Import or Export of goods there is a possibility of exemption from payment of VAT between the importer and the exporter.

* For work for large companies/contractors, VAT registration in the UK is often required from subcontractors .

* For some activities where stability and business position are important, having a VAT registration number helps to build a company’s image as more stable and prosperous than it actually is.

The UK VAT registration process takes about 6 weeks, while the following data must be provided for registration:

  • Company name and address
  • Personal data of the director, including full name, date of birth, home address & National Insurance Number
  • Company’s business bank account details

The UK VAT rate is currently 20%. Additionally, companies whose turnover does not exceed £150,000 per year can benefit from preferential registration of ‘Flat Vat Rate’, i. e. paying 9% VAT instead of 20%. In order to make sure that the Flat Rate VAT registration is beneficial for your company, please contact our consultants and get free advice on VAT.

If you need additional information related to VAT registration in the UK or VAT returns & refunds please contact us.