When you must register for VAT

tiemadmin • 3 October 2024
Calculator, notepad, and VAT note with a pen on a table with a chart in the background.

The taxable turnover threshold for VAT registration is currently £90,000 and has applied since April 2024.

Businesses must register for VAT if they meet one of the following conditions:

  1. At the end of any month, the value of taxable supplies made in the past 12 months exceeds £90,000; or
  2. At any point, there are reasonable grounds to believe that the value of taxable supplies in the next 30 days will exceed £90,000.

For condition 1, HMRC provides the following illustrative example. On 15 July your total taxable turnover for the last 12 months is £100,000. That’s the first time it has gone over the VAT threshold. You must register by 30 August. Your effective date of registration is 1 September.

For condition 2, HMRC provides the following illustrative example. On 1 May, you arrange a £100,000 contract to provide services. You’ll be paid at the end of May. You must submit your VAT registration application by 30 May. Your effective date of registration will be 1 May.

The £90,000 registration threshold also applies to relevant acquisitions from EU Member States into Northern Ireland.

Additionally, businesses without a physical presence in the UK may still be required to register for VAT if they supply goods or services to the UK or expect to do so in the next 30 days.

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