VAT Registration Certificate
Date Published: July 9th, 2019

A business in the United Kingdom is required to register for Value Added Tax if the VAT taxable revenue is in excess of the threshold of £85,000 – VAT taxable revenue is the aggregate of all goods and services sold that are not VAT excluded. A business is required to register for Value Added Tax if it is anticipated that the VAT taxable revenue will be more that £85,000 in the subsequent 30-day period or if the business had a VAT taxable revenue in excess of £85,000 in the past 12 months. To check if the business is going to cross the VAT threshold in any 12-month period, add up the non-exempt VAT sales in the UK, including:

  • Building work in excess of £100,000
  • Goods that were exchanged, part-exchanged or provided as gifts
  • Goods purchased or sold to clients
  • Business goods used for personal motives
  • Services received from companies in other nations

What is a VAT Registration Certificate and why is it important?

There are numerous methods to define a certificate, however, the simplest explanation is – a certificate is an official paper that demonstrates a particular fact. A Value Added Tax Registration Certificate is an official paper issued by the Her Majesty’s Revenue and Customs (HMRC). Hence, when the Value Added Tax registration process is finally completed, a business will receive a VAT certificate. In other words, a VAT registration certificate works as an authorised sanction, received from HMRC, that ensures the business is listed for Value Added Tax. The VAT registration certificate comprises of certain elements as mentioned below:]

  • The certificate contains a VAT registration number and provides information about the nature of business
  • Date when the business was registered for VAT and when the business became Value Added Tax registered
  • Another imperative component is the plan for filing VAT returns –certain businesses file their VAT returns three-monthly while others file the returns once a year
  • Furthermore, the certificate also encompasses the bank specifics of the business along with the trade taxonomy. The trade taxonomy defines the trade activities, and it is an easy way for other companies and other third parties to track the business

A VAT Registration Certificate is an imperative document, and every business owner should verify the certificate as soon as he/she receives it. In case of any discrepancy, the business must contact HMRC to seek clarification.

Obtaining a VAT Registration Certificate

In order to obtain a Value Added Tax registration certificate, a business must carefully complete the VAT registration process. A business can either sign up for VAT registration on their own or seek assistance from a professional establishment that can help the business to easily process the essential documents. A professional establishment has the understanding, know-how, and proficiency to complete all the tasks in a timely manner, avoiding misrepresentation of facts. This is the most suitable alternative for obtaining a Value Added Tax Registration Certificate.

Since the introduction of ‘Making Tax Digital’ for VAT, on 1 April 2019, VAT registration certificates can not, presently, be seen online either by an agent or business. HMRC is working towards resolving this problem and aims to find a solution by August 2019. For the time being, it is suggested that a photocopy of the Value Added Tax registration certificate is made prior to registering a business for MTD for VAT. Also, copies of Value Added Tax registration certificates are accessible on demand from the HMRC Value Added Tax helpline.

Read more about Value Added Tax (VAT)

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