How to register for VAT in UK?

What is VAT registration?

Almost all goods and services sold by VAT-registered enterprises are subject to VAT, which is a tax on the additional cost of the item.

Taxpayers who make more than £85,000 in VAT-taxable sales must register for VAT. If their annual sales are less than £85,000, they can also choose to register.

What is the requirement?

  • If you’re based outside the UK
  • If your business is based outside the UK
  • you supply any products or services to the UK (or anticipate to in the next 30 days) (or expect to in the next 30 days)
  • You can even check the guidelines here.
  • Almost the past year, you’ve made over £85,000 in taxable VAT revenue (the VAT threshold)
  • In the following 30 days, you estimate your turnover to reach at least £85,000.
  • If you have a turnover of less than £85,000, you can register for VAT on a “voluntary” basis.
  • When HMRC registers your business, you must pay any VAT you owe from that date.

Where to register?

You can check here for the registration procedure.

How to cancel the VAT registration in the UK?

If you are no longer eligible to be VAT registered, you must terminate your registration immediately.

For example:

  • You stop trading or making VAT taxable supplies
  • you join a VAT group
  • If you no longer meet the eligibility requirements, you must cancel your subscription within 30 days or you will be subject to a penalty fee of some kind.
  • Your VAT registration can be revoked by HM Revenue and Customs (HMRC) if your taxable turnover falls below £83,000.

Cancel procedure

  • You can cancel your Vat registration online.
  • Fill out and mail form VAT7 to cancel your VAT registration if you are unable to use the online service.

How to transfer the VAT registration in the UK?

When a company’s ownership or legal status changes, you may be able to transfer your VAT registration.

For example:

  • Your intention is to keep the VAT number of the company you’ve just purchased.
  • In case your business changes from a partnership to a sole trader.

You can apply for VAT transfer:

  • Online
  • By post

Procedure to apply online:

  • Use your Government Gateway ID and password to log onto your VAT online account if you own it.
  • To cancel your VAT registration, you’ll need to select that option. Your next question will be about the legal standing of your company.

Procedure to apply by post

Where to update if you want to change the contact details or bank details etc?

You must ensure that your VAT registration information is accurate at all times.

Within 30 days of any modifications, notify HM Revenue and Customs

  • name, trading name, or main address of your business
  • accountant or agent who deals with your VAT
  • members of a partnership, or the name or home address of any of the partners

Change of bank details:

  • Changing your bank account information necessitates at least a 14-day notice to HMRC.
  • You’ll need to advise your bank if you pay your VAT via Direct Debit. If you do this within five banking days of the due date for your VAT return or after, you risk being double-charged.
  • In case, you are using the Annual Accounting Scheme, you must write to the Annual Accounting Registration Unit to change your Direct Debit details. You must include your registration number.

You can change your details:

What is an EC Sales List?

If you operate a company in the UK that is registered for VAT and supplies goods and services to customers who are also registered for VAT in another EU nation, you are required to inform HMRC of those supplies.

How to enroll for the EC Sales list online?

  • If you want to submit your EC Sales List electronically, you are required to do so no later than 21 calendar days after the close of the reporting period.
  • You must register online.
  • After you have successfully registered and enrolled, you can then use your user ID and password to log in to EC Sales List.
  • Select ECSL from the list of available services, and then choose the web form option from the drop-down menu.
  • Make use of one line for each individual customer and one line for every supply type.
  • It is possible that you will need to provide a negative (or minus) value for the supplies that you are selling to a customer.
  • You will not be able to send in a nil return using ECSL. Therefore, you should not send in an EC Sales List if you have not made any supplies (or give out any credit notes) within the reporting period.
  • Click the “Submit” button once you have completed the process of entering all of the information for the reporting period.
  • You will be presented with an acknowledgment screen following the successful submission of your form. This offers you a unique ‘Submission Reference Number.
  • Within the first 21 days after submitting the first declaration, you have the opportunity to rectify any mistakes that may have been made on your online form.

How to send your EC Sales List to HMRC?

You can send a list :

  • ECSL – this is an on-screen form, similar to the paper EC Sales List
  • ECSL ‘bulk upload’ feature as a CSV (Comma Separated Variable) or XML (Extensible Markup Language) file
  • UN-EDIFACT format submissions.

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