FAQ: Form VAT 1

 

Contents

Top tips for completing VAT 1 application form

What if my company is incorporated/registered overseas?

What if I have not yet received my certificate of incorporation from Companies House?

What should I do if I am in the process of changing the name of my limited company?

I am self-employed. Do I register as a sole proprietor?

Where can I find my incorporation details?

Can I enter my accountant’s address as the principal place of business?

Can I enter a non-UK address as my principal place of business?

Can I enter a temporary 'C/O' address or PO Box address as my principal place of business?

My accounts are kept at one address, but the day-to-day operation of my business is operated from another address. Which address do you require?

I am not yet ready to move into the premises from which I will be trading. For correspondence purposes, can I register from my home address and notify a change of address later?

I am a sole proprietor. Do I need to submit a separate application for each business activity?

As I am applying to register for VAT using a computer, must I use a computer to keep my accounts?

I am awaiting confirmation of my bank account details. Will my initial application be rejected if I do not enter bank details?

I use an overseas account for my business. Can I enter these details?

What is a taxable supply?

Does the word 'taxable' mean when I first charged VAT?

I have made purchases for my business. Are these my taxable supplies?

I have not yet made any taxable supplies. Can I apply to register?

I am making supplies which are outside the scope of UK VAT. Are these classed as part of my taxable supplies?

What are the conditions which must be met in order for the transfer of a business to be regarded as a Transfer Of a Going Concern (TOGC) for VAT purposes?

I am late notifying you of the date I took over a VAT-registered business. I do not wish to take over the VAT Registration Number of the previous owner. Will I incur a penalty?

What is the current VAT registration threshold?

I am late notifying you of the date I exceeded the threshold. Will I incur a penalty?

If I have exceeded the VAT threshold, from what date will I be required to be registered?

How do I calculate my turnover when answering question 19?

When calculating if I will exceed the VAT threshold within the next 30 days, do I need to include previous turnover?

I have identified a date on which the expectation arose that I would exceed the VAT threshold within 30 days of that date. From what date will my registration take effect?

I am late notifying you of the date my expectation arose. Will I incur a penalty?

I am required to be registered for VAT. How far back can I ask to be registered from?

I want to apply for voluntary registration. How far back can I be registered?

I incurred VAT prior to the date I began trading. Can I be granted a date of registration which is prior to this date in order to reclaim this VAT back?

I am making taxable supplies, but I want to be registered from a date in the future. How far in the future can my registration become effective from?

How do I calculate the value of my taxable supplies?

Is the figure I give for the value of the taxable supplies I will make in the next 12 months the VAT exclusive turnover?

Do I include the value of any zero-rated supplies when calculating the value of my exempt supplies?

What are exempt supplies?

All my supplies are exempt from VAT but I incur input VAT. Can I still apply to register?

Some, but not all of my supplies are exempt from VAT. Can I still apply to register?

Question 25 - I am only buying and/or selling services (not goods) from EC countries other than the UK. Do you require these figures?

What is the current list of EC Member States?

What are zero-rated supplies?

How do I qualify for exemption?

If I am granted exemption, will I still be able to reclaim input VAT?

How will I know if I have been allowed exemption?

If I am granted exemption what should I do if the nature of my supplies changes in the future?

I do not have a National Insurance number. Can I still apply for registration?

I have never had a National Insurance number, but I have evidence to show that I have recently applied for one. Can I apply for registration?

Where can I find my National Insurance number/tax ID no?

What signature is required on the form?

How long will my application take?

My application is urgent. Can I pay a fee to HMRC to have my application fast-tracked?

My application is urgent. Can you ring me with a temporary VAT number?

How will you notify me of my VAT number?

I need to submit an election to waive exemption (option to tax) form to HMRC as part of my application. How do I do this?

Will I need to provide any additional information or documentation in support of my application?

When will I receive my VAT certificate?

Where can I find out more about applying for VAT registration?

 

Top tips for completing VAT 1 application form

Please see our top tips for completing VAT 1 registration application form.

What if my company is incorporated/registered overseas?

Please enter the country of incorporation, the date of incorporation/registration and the incorporation/registration number.

What if I have not yet received my certificate of incorporation from Companies House?

You must await confirmation of your incorporation details before submitting your application. You must enter the incorporation details on the application form.

What should I do if I am in the process of changing the name of my limited company?

You must enter the new company name on the application form along with the incorporation details.

I am self-employed. Do I register as a sole proprietor?

Yes - for the purposes of VAT registration you will be registered as a sole proprietor.

Where can I find my incorporation details?

These details are shown on your certificate of incorporation issued by Companies House. Incorporation details can be accessed from the Companies House website or contact them on Tel 0870 3333636.

Can I enter my accountant’s address as the principal place of business?

For the purposes of VAT registration we cannot normally accept the address of an accountant’s office as the principal place of business.

Can I enter a non-UK address as my principal place of business?

Only if you are an overseas business with no business establishment in the UK.

Can I enter a temporary 'C/O' address or PO Box address as my principal place of business?

No.

My accounts are kept at one address, but the day-to-day operation of my business is operated from another address. Which address do you require?

The address we require is the one where the day-to-day activities of the business are conducted ie usually where orders are received and processed.

I am not yet ready to move into the premises from which I will be trading. For correspondence purposes, can I register from my home address and notify a change of address later?

In these circumstances, we will consider using your home address, but we may write to you for additional information regarding the address of your place of business.

I am a sole proprietor. Do I need to submit a separate application for each business activity?

No. An individual registering as a sole proprietor can only have one VAT number. This number must be used to account for VAT on all the business activities of the sole proprietor.

As I am applying to register for VAT using a computer, must I use a computer to keep my accounts?

No.

I am awaiting confirmation of my bank account details. Will my initial application be rejected if I do not enter bank details?

No. However, we may write to you following receipt of your application to request confirmation of your bank details.

I use an overseas account for my business. Can I enter these details?

No. We can only accept details of a UK account.

What is a taxable supply?

The supply of any goods and services made by your business which are subject to VAT at any rate, ie standard rate, reduced rate or zero-rated.

Does the word 'taxable' mean when I first charged VAT?

No. For the purposes of VAT, all the goods or services which you supply and which are VAT rated - including those which are zero-rated - are called taxable supplies, whether you are registered for VAT or not.

I have made purchases for my business. Are these my taxable supplies?

No. Only the goods or services which are supplied by your business are your taxable supplies.

I have not yet made any taxable supplies. Can I apply to register?

Yes - we can consider your application for registration as an intending trader. You must enclose documentary evidence of your intention to trade such as copies of contracts, orders received by the business, details of purchases for your business, etc.

I am making supplies which are outside the scope of UK VAT. Are these classed as part of my taxable supplies?

No. These supplies do not count towards your taxable turnover.

What are the conditions which must be met in order for the transfer of a business to be regarded as a Transfer Of a Going Concern (TOGC) for VAT purposes?

There are a number of rules which determine whether or not a business transfer can be treated as a TOGC. Detailed information on TOGCs, can be found in Notice 700/9 Transfer of a business as a going concern.

I am late notifying you of the date I took over a VAT-registered business. I do not wish to take over the VAT Registration Number of the previous owner. Will I incur a penalty?

Possibly - If you have taken over a VAT-registered business from someone else as a going concern and that business was required to be registered at the time of the transfer, you must notify us within 30 days of the date on which the transfer took place.

What is the current VAT registration threshold?

Further information on current and previous registration thresholds can be found on this site or contact the VAT Helpline on Tel 0300 200 3700.

I am late notifying you of the date I exceeded the threshold. Will I incur a penalty?

Possibly - registration applications notifying us that a business has exceeded the threshold must be received by HM Revenue & Customs (HMRC) within 30 days of the end of the month on which the limit was exceeded.

If I have exceeded the VAT threshold, from what date will I be required to be registered?

You cannot be registered from a date any later than the first day of the second month after the month in which you exceeded the threshold.

For example: If you exceeded the threshold on 5 October, you are not required to be registered until 1 December. In this example, 1 December is the latest date from which your registration could be made effective. You can request registration from an earlier date if you wish, but this date cannot normally be before the date on which you made your first taxable supply. If you are allowed registration from a date earlier than you are required to be registered you will have to account for output VAT from that date.

Note: The rules which govern the date from which your registration is required to become effective are not the same as those which determine the date by which you are required to notify us of your liability for registration.

How do I calculate my turnover when answering question 19?

You must declare the date on which the value of your taxable supplies in the last 12 months or less (or your turnover in any previous 12 month period) exceeded the threshold. The 12 month figure is based on a rolling calculation, ie after the end of any rolling 12 month period you should add the value of your taxable supplies for month 13 and deduct the value of supplies made in month 1. If the new cumulative turnover figure exceeds the registration threshold, you are required to register.

When calculating if I will exceed the VAT threshold within the next 30 days, do I need to include previous turnover?

No - you only need to consider if the total value of the taxable supplies you expect to make in the next 30 days ALONE will exceed the VAT threshold.

I have identified a date on which the expectation arose that I would exceed the VAT threshold within 30 days of that date. From what date will my registration take effect?

Your date of registration will be the date on which you declare that the expectation arose. You cannot be registered any later than this date, but you can request an earlier date.

Note: The rules which govern the date on which your registration is required to become effective are not the same as those which determine the date on which you are required to notify us of your liability for registration.

I am late notifying you of the date my expectation arose. Will I incur a penalty?

Possibly - an application notifying us of such a date must be received by Customs within 30 days of the date on which the expectation arose.

I am required to be registered for VAT. How far back can I ask to be registered from?

Your date of registration cannot be more than 3 years PRIOR to the date on which you are REQUIRED to be registered. You will not normally be allowed registration from a date which is before the date on which you made your first taxable supply. In the case of a limited company, the date of registration cannot be before the date of incorporation. If you request registration from a date earlier than you are required to be registered you will have to account for VAT from that date.

In respect of input tax, you are allowed to reclaim VAT incurred on goods purchased by the business in the three years prior to your date of registration (six months for services received by the business). Please note that the repayment of input tax is subject to certain rules. More information can be found in Notice 700 The VAT Guide.

I want to apply for voluntary registration. How far back can I be registered?

Your date of registration cannot be more than three years PRIOR to the date of your application. You will not normally be allowed registration from a date which is before the date of your first taxable supply. In the case of a limited company, the date of registration cannot be before the date of incorporation. You must account for output tax on all your taxable supplies from the date you request.

In respect of input tax, you are allowed to reclaim VAT incurred on goods purchased by the business in the three years prior to the date of registration (six months for services received by the business). Please note that the repayment of input tax is subject to certain rules. More information can be found in Notice 700 The VAT Guide.

I incurred VAT prior to the date I began trading. Can I be granted a date of registration which is prior to this date in order to reclaim this VAT back?

Possibly - we will write to you to request information and/or documents to support the date which you request. NOTE: In respect of input tax, you are allowed to reclaim VAT incurred on goods purchased by the business in the three years prior to the date of registration (six months for services received by the business). Please note that the repayment of input tax is subject to certain rules. More information can be found in Notice 700 The VAT Guide.

I am making taxable supplies, but I want to be registered from a date in the future. How far in the future can my registration become effective from?

If you are applying for voluntary registration, your date of registration can be no later than three months after the date on which we receive your application.

How do I calculate the value of my taxable supplies?

Your taxable turnover is the total value of the taxable supplies made by the business. This includes the value of any zero-rated supplies. You do not need to include the value of any capital assets or the value of any exempt supplies.

Is the figure I give for the value of the taxable supplies I will make in the next 12 months the VAT exclusive turnover?

Yes.

Do I include the value of any zero-rated supplies when calculating the value of my exempt supplies?

No. Exempt supplies are NOT the same as zero-rated supplies.

What are exempt supplies?

Exempt supplies are supplies which do not attract VAT at either the standard, reduced or zero rate. They do not form part of your taxable turnover. If you are registering for VAT and you make some exempt supplies, you may not be able to reclaim all your input VAT.

All my supplies are exempt from VAT but I incur input VAT. Can I still apply to register?

Some business activities are wholly exempt from VAT, therefore registration cannot be granted (there are a small number of exceptions to this rule). If you are making wholly exempt supplies you cannot normally recover any input VAT.

Some, but not all of my supplies are exempt from VAT. Can I still apply to register?

Yes.

Note: Input tax related to exempt supplies cannot normally be recovered.

Question 25 - I am only buying and/or selling services (not goods) from EC countries other than the UK. Do you require these figures?

No - do not enter the value of any services bought from, or sold to other EC countries unless they are directly related to moving goods (for example, commission, freight, insurance, etc).

What is the current list of EC Member States?

In addition to the UK, the other current members of the EU are Austria, Finland, Greece, Luxembourg, Spain, Belgium, France, Ireland, Netherlands, Sweden, Denmark, Germany, Italy, Portugal, Cyprus*, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Bulgaria and Romania.

*Excludes Turkish controlled Cyprus.

What are zero-rated supplies?

These are taxable supplies on which the current VAT rate is 0 per cent. Although these supplies are rated at 0 per cent, they are classed as VAT rated. They are not the same as exempt supplies.

Examples of zero-rated goods includes most food (but not meals in restaurants or cafes and hot take-away food and drink), books, newspapers, young children’s clothing and shoes, exported goods, most prescriptions, most public transport services). Please note that this list is not exhaustive.

How do I qualify for exemption?

If you are required to be registered, and your taxable supplies are wholly or mainly zero-rated, you may not need to be registered for VAT. However, you still need to complete the application form in order to apply for exemption. Exemption is allowed on the basis that your taxable supplies and acquisitions are, and will continue to be, wholly or mainly zero-rated. If VAT is due on some of your supplies you must be able to show that, if you were registered, your input tax would normally be more than your output tax for your application for exemption to be allowed.

If I am granted exemption, will I still be able to reclaim input VAT?

No.

How will I know if I have been allowed exemption?

We will write to you to confirm that exemption has been granted.

If I am granted exemption what should I do if the nature of my supplies changes in the future?

You must notify us in writing if your circumstances change, including the nature of the supplies which you make.

I do not have a National Insurance number. Can I still apply for registration?

Yes. If you have never had a National Insurance number, and you are not awaiting a number as a result of an application which you have made to HMRC, please enter the Tax Identification number issued by your country of origin.

I have never had a National Insurance number, but I have evidence to show that I have recently applied for one. Can I apply for registration?

Yes. Please enter the Tax Identification number issued by your country of origin and enclose copies of documents in respect of your application for a National Insurance number.

Where can I find my National Insurance number/tax ID no?

You National Insurance number can be found on the following documents:

An end of year statement of tax and NI paid (P60), pay slip, annual tax return or employer’s wage records.

What signature is required on the form?

The form must be signed by the registered person (ie the sole proprietor, a partner, director, company secretary or trustee as appropriate). The form can be signed by an authorised official providing that a letter of authorisation is enclosed with the application. This letter must include their home address and National Insurance number.

For an unincorporated Body/Non Profit Making Body, the form must be signed by the Trustee, Secretary, Treasurer, Chairman, (as applicable). For a local authority, the form must be signed by the Town Clerk, Head of Finance or Treasurer (as applicable).

How long will my application take?

Providing you have given all the necessary information on your application and we do not need additional documentation or information from you, we aim to process your application within 14 days following receipt.

My application is urgent. Can I pay a fee to HMRC to have my application fast-tracked?

We are unable to process individual applications on a fast-track basis. Applications are processed strictly in the ‘date of receipt’ order. We aim to process your application within 14 days following receipt. In some cases we may request additional information and/or documentation.

My application is urgent. Can you ring me with a temporary VAT number?

There is no such thing as a temporary VAT number. Your application for VAT registration will be processed and, if it is approved, a VAT number will be sent to you by post.

How will you notify me of my VAT number?

For security reasons, we can only notify VAT Registration Numbers in writing using the postal service. This notification can only be sent to the address that is confirmed to us as being the principal place of business. We cannot fax, email or telephone you with your VAT Registration Number.

I need to submit an election to waive exemption (option to tax) form to HMRC as part of my application. How do I do this?

A completed option to tax form should be enclosed with your application. For more information on opting to tax land and property please see Notice 742A Opting to tax land and buildings.

Will I need to provide any additional information or documentation in support of my application?

Possibly. We may need to contact you with any queries arising from the information which you have submitted on your application. Please provide a phone number where you can be contacted. If you are applying for registration before you begin trading you must enclose copies of documents as evidence of your intention to trade with your application.

When will I receive my VAT certificate?

We aim to issue your VAT certificate within 15 working days of the receipt of your application. The registration process may take longer if we have to write to you for additional information.

Where can I find out more about applying for VAT registration?

You can access Notice 700/1 Should I be registered for VAT as well as other public notices related to VAT on our website.

Advice can also be obtained from the Helpline on Tel 0300 200 3700.

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