Who should register for VAT?


This section deals with the rules relating to Value-Added Tax (VAT) registration. It explains who must register for VAT, the VAT thresholds, electing to register for VAT and when you can opt to tax lettings.

Generally, you must register for VAT if you are an accountable person and you exceed or are likely to exceed the relevant VAT thresholds.

If you are setting up a business but have not yet commenced supplying taxable goods or services, you should register for VAT as soon as it is clear that you will become an accountable person.

A person carrying on only exempt activities or a person carrying on activities other than in the course or furtherance of business may not register for VAT. However, a person carrying on exempt activities may be required to register in respect of the acquisition of goods from other European Union (EU) Member States, or services received from abroad.

Farmers, sea fishermen and traders whose turnover is below the VAT thresholds are not generally obliged to register for VAT but may do so if they wish.

Please see further guidance for registration information in respect of certain student unions, trade protection associations, and gas and oil exploration companies.

Next: What are the VAT thresholds?