Applying to register for VAT

– additional information to help you

There is help on form VAT1 itself

but these notes provide extra
help with some of the questions.
The notes have the same numbers as the questions they refer to.
On the form, complete each question in order ticking ‘Yes’ or ‘No’ where
asked. There is a Glossary on pages 9 and 10. You may have to tick No to
some questions because they do not apply to you. The form will tell you
what to do.
If you need more space, continue on a separate sheet of paper. Write the
name and address of the applicant on any sheets of paper you use.
When you have completed the form use the Checklist on page 6 to make
sure you have completed your application. The instructions for sending
your completed application are on page 7.

About 6 Business activities

the business Explain what your business does, including the type of goods or services you
supply and whether your supplies are retail or wholesale. For example,
instead of 'building services', enter 'plasterer' or 'electrician', etc, or instead of
'consultancy', enter 'management consultancy’ or ‘financial consultancy’, etc.
If you have not started trading, please enter details of your intended
business activities.
If your business has more than one activity, enter any other activities in
Forms and Notices are
available from: the ‘Other activities’ box.
• our VAT, Excise and Customs If your business activities relate to the buying, selling or letting of land or
Duties Advice Line on property, you may need to elect to waive exemption from VAT (known as
0845 010 9000, or
'option to tax') by completing form VAT1614 Option to tax land and
• our website at www.hmrc.gov.uk.
property. For more information see VAT Notice 742A Opting to tax land
and buildings .

7 Are you currently involved, or in the last two years been involved, in any other
business in the UK or Isle of Man either as a sole proprietor, partner or director?
Include any other business where partners or directors of the business
have been involved and are making this application.
If the only previous involvement of the directors was with companies that
were members of a corporate group, you need only enter the names of the
holding companies.
If you are registering a company that is part of a corporate group, you
need only enter the name of the holding company.
If any of the holding companies you enter are VAT registered or are part of
a VAT group, show their VAT registration numbers.

VAT1(Notes) Page 1 HMRC 08/07

 VAT1 (NOTES) Applying to register for VAT

8 UK bank or building society account

This must be a UK account in the name of the business you are registering.
We will repay any VAT we owe the business directly into this bank or
building society account. If you do not have a UK bank account, please
explain on a separate sheet of paper. If you are currently in the process of
opening a business account, you must provide copies of any relevant
correspondence received from your bank or building society.
Note – some accounts cannot receive payments in this way so check with
your bank or building society if you are not sure.

About your This part of form VAT1 requires legal statements and it is important that
VAT registration you provide accurate information.
Read the notes to the questions carefully before you answer. You can also
phone our VAT, Excise and Customs Duties Advice Line on 0845 010 9000
if you need help.

9 Are you registering for VAT because you have taken over (or are about to
take over) a business (or part of a business) as a going concern, or
changed (or are about to change) the legal status of a VAT registered
business?
Enter the date the change took place and work out if you need to register
from that date. Look at the value of the taxable supplies made by the
transferred business in the 12 months before the transfer and add the
value of any taxable supplies you have made (if you were already the
owner of a business) in the 12 months before the transfer. If the total is
over the registration threshold you must register within 30 days and your
effective date of registration will be the date when the change took place.
Obtain and keep the turnover records of the transferred business so you
can keep a check on whether you go over the threshold in later months
because, if you do not need to register now, you need to keep checking the
combined turnovers on a monthly basis (see ‘You may need to keep
checking your turnover’ on page 4).
By ‘change of legal status’ we mean a change, for example, from a sole
proprietorship to a partnership or limited company.

12 Do you want to keep the previous owner's VAT number?

In certain circumstances you can apply to keep the previous owner’s
VAT registration number. Send a completed form VAT68 back to us with
your form VAT1. For more information see VAT Notice 700/9 Transfer of a
business as a going concern.
Note – you will be responsible for accounting for all the tax due in the
whole tax period that ends after the date of transfer, not just from the date
you took over. And if the number is reallocated to you, you will also be
responsible for all VAT declarations that were made before the transfer, and
you will have to correct any errors and pay any interest that may be due
(but not any penalty).
If we cannot reallocate the number, we will issue you with a new number.

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13 Are you applying for voluntary registration?

You can apply for voluntary registration where your turnover does not go
over the registration threshold, or where you intend to trade but your
business has not started yet.
Enter the date you would like to be registered from. We cannot accept a
date that is more than three years before the date of your application.
Sometimes we may ask for evidence from you about the supplies that you
are making or intending to make.
Important – the date you put here, once we have agreed it, will be your
registration date. You must account for output tax on all your taxable
supplies from that date. Once a date is agreed, you cannot change your mind
and ask us to alter your voluntary registration to a different date. We will
only agree to change the date of registration in exceptional circumstances.

14 and 15 If you are registering because your taxable turnover has gone over the
registration threshold in any past period of 12 months or less, you must
complete and send form VAT1 within 30 days of the end of the month in
To find out the current which your taxable turnover went over the threshold.
VAT thresholds and rates: If you are registering because you had an expectation on any date that
• ring our VAT, Excise and Customs your taxable turnover would go over the registration threshold in the next
Duties Advice Line on 30 days alone, you must complete and send form VAT1 within 30 days of
0845 010 9000, or
the date you first expected this.
• go to our website at
www.hmrc.gov.uk. You may have to pay a penalty, in addition to any VAT that is due, if you do
not register for VAT at the correct time.
Tick Yes to Question 14 if you are registering because your taxable
turnover has gone over the registration threshold in any past period of
12 months or less.
Also, tick Yes to Question 15 if you expect the value of taxable supplies you
will make in the next 30 days alone to go over the VAT threshold or,
if at sometime in the past, you expected the value of your taxable supplies
to go over the threshold in the next 30 days alone.
For example, this could happen if you were running an exhibition and
expected to sell enough tickets to go over the VAT threshold, or if you have
won a big contract to supply goods or services.
Tick No to Question 15 if you do not expect the value of your taxable
supplies to go over the registration threshold in the next 30 days alone, or
never had such an expectation at anytime in the past.
If you answered 'Yes' to Question 14 and 'No' to Question 15, your effective
date of registration will be the first day of the second month after your
taxable supplies went over the registration threshold. For example, if you
went over the threshold on 31 August, you would have to tell us by
30 September and your registration date would be 1 October.

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 VAT1 (NOTES) Applying to register for VAT

If you answered 'No' to Question 14 and 'Yes' to Question 15, your effective
date of registration will be the date shown at Question 15. For example, if
you expect to go over the threshold in the next 30 days alone on
20 January, you must complete and send form VAT1 by 21 February and
your registration date would be 20 January.
If you have answered 'Yes' to both Question 14 and Question 15, your
effective date of registration will be the earlier of either the first day of the
second month following the date shown at Question 14 or the date shown
at Question 15.
You may need to keep When you have worked through the form and answered all the questions
checking your turnover that apply to you, you may not be liable to apply for VAT registration
because you have not gone over the threshold. If this happens to you, keep
checking your turnover once a month to see if you go over the threshold.
Each month look at how you have answered Questions 14 and 15 (your
past and future turnover). If you go over the threshold, you will have to
apply to be registered and you will only have 30 days to complete and
send your application.
If you have taken over a going concern but did not need to register at the
date of change, you must also include the turnover of the business
before the transfer in carrying out your monthly check on turnover.

16 Do you want to apply for exemption from registration?

You can apply for exemption from registration if your taxable supplies are
all or nearly all zero-rated. (You can look up ‘Zero-rated supplies’ in the
Glossary on page10.)
If zero-rated supplies along with standard and reduced rate supplies are
involved, you will need to show us you are going to be in an overall
repayment position over the next 12 months. Exemption from registration
is at the discretion of HM Revenue & Customs. Complete form VAT1 in full so
we have information to help us make a decision about granting exemption.

17 Application for earlier registration

Some businesses may benefit from registering for VAT earlier than the date
they become liable to register. For example, you may wish to claim back the
VAT you were charged for expenses connected with setting up your
business. Subject to certain conditions, you can reclaim VAT on goods you
bought for your business within the last three years provided you have not
yet sold them, together with VAT on services you received not more than
six months before your registration date.
Important – if you ask for an earlier date than the one on which you are
obliged to be registered, and we agree to it, you will have to account for
output tax on all your taxable supplies from the earlier date. Once we have
agreed the date it cannot be altered later (unless we find out you were
liable to be registered from a date earlier than the one we agreed).

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VAT1 (NOTES) Applying to register for VAT

Enter the date you want to be registered from, if this is earlier than the
date you are required to be registered. (But we cannot accept a date earlier
than three years from the date you are required to be registered.)

18 Do you expect the VAT on your purchases to regularly exceed the VAT on
your taxable supplies?
This question is about whether the business is likely to get regular
repayments from us because the taxable supplies are mainly zero-rated.
Note – if you are intending to ask for exemption from registration
(Question 17), you should answer this question now, in case exemption is
not granted.

21 Do you expect to buy goods from other EU member states in the

next 12 months?
If Yes, enter the value of goods you expect to buy in the 12 months
following your date of registration.
Do you expect to sell goods to other EU member states in the
next 12 months?
If Yes, enter the value of goods you think you will sell in the 12 months
following your date of registration.
Do not include the value of any services unless they are directly related to
moving goods (for example, commission, freight insurance, etc.).

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 VAT1 (NOTES) Applying to register for VAT

Checklist Using this checklist will help you to make sure that you have completed
the form correctly and included any other forms and documents we have
asked you to send.
If you are not sure what to do, read the notes to the Questions, as
appropriate, or phone our VAT, Excise and Customs Duties Advice Line
on 0845 010 9000.

Have you signed and dated form VAT1? Have you entered details from the
If appropriate to the business' circumstances, Certificate of Incorporation?
have you completed and enclosed: —relates to Question 3, and applies
if the business is a corporate body.
• Form VAT2
—relates to Question 1, and Have you enclosed an authorised
applies if the business is signatory letter, or an agent authorisation
a partnership form 64-8?
—relates to Question 23, and
• Forms VAT50 and VAT51
applies if an authorised signatory, or
—applies if you answered Yes to
an authorised agent, is signing
Question 4
this application.
• Form VAT1614
If you have any separate sheets of paper
—relates to Question 6, and applies
giving extra information,
if the business activities involve
have you written the applicant's
land and property and you are
name and address on each sheet
’opting to tax'
before enclosing them with this form?
• Form VAT68
—applies if you answered Yes to
Question 12. You must complete
this form if you are applying to
transfer an existing VAT number.

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 VAT1 (NOTES) Applying to register for VAT

Sending your Send your completed application form to the following Registration Units:
completed application For all standard registration applications send to:
Wolverhampton Registration Unit
HM Revenue & Customs
Deansgate
62-70 Tettenhall Road
Wolverhampton WV1 4TZ
Telephone 0845 039 0129

For applications to register a VAT group or if you wish to keep the previous
owner’s VAT number (where you have ticked ‘Yes’ to Question 12 on the
application form) send to:
Grimsby Registration Unit
HM Revenue & Customs
Imperial House
77 Victoria Street
Grimsby DN31 1DB
Telephone 0845 039 0279

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 VAT1 (NOTES) Applying to register for VAT

About HMRC For more information about our service commitment go to

www.hmrc.gov.uk/about/sc.htm
For more information about our complaints procedure go to
www.hmrc.gov.uk and look for Complaints within the Search facility.

How we use your HM Revenue & Customs is a Data Controller under the
information Data Protection Act 1998. We hold information for the purposes specified
in our notification to the Information Commissioner, including the
assessment and collection of tax and duties, the payment of benefits and
the prevention and detection of crime, and may use this information for
any of them.
We may get information about you from others, or we may give
information to them. If we do, it will only be as the law permits to
• check the accuracy of information
• prevent or detect crime
• protect public funds.
We may check information we receive about you with what is already in
our records. This can include information provided by you, as well as by
others, such as other government departments or agencies and overseas
tax and customs authorities. We will not give information to anyone
outside HM Revenue & Customs unless the law permits us to do so. For
more information go to www.hmrc.gov.uk and look for Data Protection Act
within the Search facility.

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 VAT1(NOTES) Applying to register for VAT

Glossary
There are some special terms that we use in relation to VAT. These are the ones you need to
know to complete your form VAT1. If you need more help, look at the notes to the questions.
You can download the VAT Notices from our website at www.hmrc.gov.uk and you can phone our
VAT, Excise and Customs Duties Advice Line on 0845 010 9000 for advice.

Corporate body definition Exempt supplies continued

Included here are Most supplies of goods and services in the UK are
• limited companies (and overseas equivalent) taxable supplies unless they are specifically excluded
• companies set up by Royal Charter, Letters Patent by law – these are exempt supplies. Examples include
or Acts of Parliament • some types of selling, leasing and letting land and
• Limited Liability Partnerships buildings
• European Economic Interest Groupings • insurance
• Friendly, Industrial and Provident Societies. • betting, gambling and lotteries (but not fruit
machine takings)
European Union - the following countries are • providing credit
members: • certain education and training
• fund raising events by charities
Austria Hungary Slovakia
• subscriptions to certain membership organisations
Belgium Ireland Slovenia • the services of doctors and dentists
Cyprus* Italy Spain • certain services from undertakers.
Czech Republic Latvia Sweden Guidance is available on all exemptions in the library
Denmark Lithuania United section of www. hmrc.gov.uk or by calling our
Kingdom VAT, Excise and Customs Duties Advice Line
Estonia Luxembourg
* Excludes
on 0845 010 9000.
Finland Malta Turkish-
France Netherlands controlled
Cyprus.
Input tax is the VAT you pay on the goods and
Germany Poland services you buy to use in the course of your business.
Greece Portugal
Output tax is the VAT you charge on your
taxable supplies.
Exempt supplies are business supplies that do not
attract VAT at either standard, reduced or zero rate.
They are not part of your taxable turnover for VAT. Reduced rate - these are taxable supplies on which
If you are registered for VAT and make some exempt the current VAT rate is 5%. Examples include:
supplies, you may not be able to claim back all of • supplies of domestic fuel or power
your input VAT. • installation of energy-saving materials.
This list is not exhaustive and further information
regarding reduced-rated supplies can be found in the
library section of www. hmrc.gov.uk or by calling
our VAT, Excise and Custom Duties Advice Line
on 0845 010 9000.

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 VAT1 (NOTES) Applying to register for VAT

Glossary continued

Standard rate is the rate of VAT for most goods Transfer of a going concern - if you have taken over
and services. a business as a going concern from someone who
was, or was required to be, VAT registered, the law
Supply is the sale of goods or services including deems you to have carried on the business being
barter. transferred prior to the transfer for the purposes of
establishing when you should VAT register. The law
also requires the person transferring the business to
Supply of goods is when exclusive ownership of
give you the records relating to the business being
goods passes from one person to another.
transferred, unless our permission is given that they
can keep them; if this happens you should ask for
Supply of services is when someone does something copies of the relevant records, which you must keep
for a consideration – other than supplying goods. for inspection.

Tax liability – if supplies are neither zero-rated nor

Unincorporated body is an organisation of people or
exempt, they must be liable to VAT at the standard
bodies whose members have a common purpose,
or reduced rate.
which has an existence independent of its members.
For example, clubs, associations, etc.
Taxable supplies – this is a legal term that many See form VAT1, Question 3.
people find confusing. In most cases ‘supply’ simply
means the sale of goods or services including barter.
Value Added Tax (VAT) is a tax on consumer
The law defines ‘taxable supplies’ as any supply made
expenditure. Registered businesses charge VAT when
in the UK that is not exempt from VAT. That is, any
they supply their goods and services in the UK. (VAT
supply, which is not exempt, is a taxable supply,
is also charged on goods, and some services that are
whether the supplier is VAT registered or not. Taxable
imported from places outside the European Union
supplies include those that are zero-rated. A person is
(EU) and on goods coming into the UK from another
not required to account for VAT on taxable supplies
EU member state.)
that are made at a time when they are not required
to be VAT registered and are not VAT registered
voluntarily. VAT Group - a VAT group allows two or more
corporate bodies to be treated as a single VAT entity.
Within the group, there will be a representative
Taxable turnover for VAT is the total value of your member who is responsible for accounting for VAT of
supplies that are taxed at either the standard, the whole group. See VAT Notice 700/2 Group and
reduced or zero rate. (The supply of goods and divisional registration for more details.
services that are exempt from VAT is not part of your
taxable turnover.)
Zero-rated supplies - applies to supplies such as
For VAT registration purposes, you need to look at food, books, newspapers and young children’s
the turnover in the last 12 months or less and/or the clothing. This list is not exhaustive and further
next 30 days alone. information regarding zero rates can be found in the
See form VAT1, Questions 14, 15 and 19. library section of www.hmrc.gov.uk or by calling our
VAT, Excise and Customs Duties Advice Line
on 0845 010 9000.

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