Vat Registration

What Is The Vat Registration?

The companies doing business have to keep the record of the tax paid. It is challenging to maintain the record of the whole year. It is not easy to keep the full history of the sales tax.

Registration with Value Added Tax has solved the problem. The business companies get registered with VAT because it is compulsory to keep all the details of the products/services provided.

These receipts are compiled to form the total tax per year.

VAT Registration is an identification number used for listing the business with the government, including production and sale. It also helps as the tax identification number for many countries.

The VAT Identification number is verified online too. VAT identification number used in many European countries

Purpose of registering with VAT:

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When you register your business with VAT now, you are able to claim VAT. The claimed VAT is on company purchases

  • You can only charge the right amount on goods or services sold.
  • Pay VAT on time DUE TO HMRC.
  • Submit your VAT returns on time.
  • Keeping proper VAT records and receipts will be useful later.

The VAT number issued must be included in the voices by the contractor’s company.

Compulsory VAT Registration:

You must register for VAT if.

  • Or the taxable turnover for 12 months is £85,000

The VAT identification number also depends on the goods that you sell. You have to provide the business details, for example, where to sell, etc.

Do I need to register for VAT?

The taxable turnover is the total sales value. The sale you did the whole year counted is taxable turnover. So if you are registered, this sale doesn’t count. Your taxable turnover is the total value of all taxable sales you make throughout the tax year. You can register for the VAT Identification number by accountant or post.

Registration with VAT Voluntarily:

Voluntary registration with VAT has both pros and cons. These pros and cons are for their own particular business and personal preference.

Advantages :

There is a possibility to reclaim the VAT on the goods and services you purchase.


  • Once you registered with the VAT number, you will add the tax on the goods. Due to the sales tax, the products/services you provide will get expensive.
  • You have to keep the record of invoices and to file a VAT return.
  • You have to maintain the VAT accounting record.

Registering with VAT and Debitoor:

Registering with VAT and debitoor is the best software you can use. Debitoor invoicing software makes it simple and easy to manage your company finances.

You can also keep this software app on mobile.

It is a very reliable app and will help to maintain the record properly.

Why be registered by VAT?

If your business is not registered, you must not charge VAT. Only VAT Registered companies can charge VAT on it. The VAT Registered companies are only to reclaim the VAT.

Difference between VAT and Non-VAT registered?

A business entity registered with VAT is subject to a 12% sales tax. This 12% sales tax is on its gross sale and receipt.

The business entity not registered with VAT is a 3% sales tax on the total sale. It is also called the percentage Tax.

Does every company have a VAT number?

The contractors run limited companies, require a VAT number. The advantage of being VAT registration is that it gives a professional impression. You can also reclaim VAT if needed.

What is a VAT Exempt?

Sales of some goods and services are called VAT exempt. If you sell these goods/services, you will not charge your customers. And if you buy them, you cannot reclaim VAT.