VAT registration number – what you should know

When you register for VAT in the UK, HMRC will issue a VAT registration certificate. This will contain your unique VAT registration number, which identifies your business as a taxable person registered for VAT. 

Your certificate will be posted to your registered office address (if you have a limited company or LLP) or business address (if you operate as a sole trader or business partnership).

This post explains the purpose of a VAT registration number, what it looks like, which businesses can apply for one, and the different situations when a VAT number may be required.

What is a VAT registration number?

A VAT registration number (‘VRN’ or ‘VAT number’) is a unique identifier that HMRC issues to a business upon registering for UK VAT. Only VAT-registered businesses receive VRNs, so a valid number proves that a particular trader is VAT-registered. 

HMRC and other businesses use VAT numbers to identify traders for all VAT-related purposes. If a business has a VAT number, it can charge VAT on the goods or services it sells and reclaim VAT on the goods or services it buys. 

Traders must retain their VAT number until they cancel their registration or transfer the business as a going concern and the new owner wants to retain it.

What does a UK VAT number look like?

A UK VAT number usually contains nine digits prefixed by two letters. The prefix ‘GB’ is used for businesses in England, Scotland, and Wales. In Northern Ireland, the prefix ‘XI’ will be used instead if the business trades under the Northern Ireland Protocol.

For example, GB 123456789 or XI 123456789.

Other countries have different VAT number formats, but they typically feature an identifying country code followed by a block of numbers or characters. Some examples include:

• Denmark – country code ‘DK’ plus eight numbers, such as DK 12345678
• France – country code ‘FR’ plus 11 characters, such as FR 123456798910 or FR X1234567890
• Germany – country code ‘DE’ followed by nine numbers, such as DE 123456789
• Ireland – country code ‘EI’ followed by eight or nine characters, such as EI 1234567X or EI 1X23456X

HMRC provides more information on EU country codes and VAT numbers.

More than 170 countries have a VAT system, including the UK, all EU and EEA countries, Australia, Canada, China, India, Russia, and most countries in Latin America and the Caribbean. 

There is no VAT system in the USA. Instead, businesses charge sales tax, which varies from state to state.

Do I need a VAT registration number?

You need to register for VAT and obtain a VAT registration number if you want to charge VAT on the things your business sells and/or reclaim VAT on business expenses. The rules are the same whether you’re a sole trader, partnership, or limited company. 

Some businesses are legally required to register for VAT, whilst others can register voluntarily. You must register for VAT with HMRC if:

• Your total taxable turnover for the past 12 months exceeds £90,000 (the VAT threshold)
• You expect your taxable turnover to exceed £90,000 in the next 30 days

Your taxable turnover is the total value (excluding VAT) of your business sales.

VAT registration is also compulsory, regardless of taxable turnover, if all of the following apply:

• You are based outside the UK
• Your business is based outside the UK
• You supply goods or services to the UK (or expect to do so in the next 30 days)

In this situation, you are classed as a non-established taxable person (NETP). However, you may be able to apply for exemption from registration if all of your taxable goods or services are zero-rated (i.e. they have a 0% VAT rate).

Generally, you don’t need to register for VAT if everything you sell is VAT-exempt or ‘out of scope’ for VAT. Exceptions apply to certain businesses in Northern Ireland (see below).  

Businesses in Northern Ireland

If your business is based in Northern Ireland, you need to register if both of the following apply:

• You only sell VAT-exempt or ‘out of scope’ goods and services 
• You buy goods for more than £90,000 in any 12-month period from EU VAT-registered suppliers to use in your business

Voluntary VAT registration 

Where VAT registration is not compulsory, you can still register for VAT voluntarily. This can be beneficial for many small businesses, enabling them to reclaim VAT on the goods or services they buy. 

When will I use my VAT registration number?

If you register your business for VAT, you’ll use your VAT number on various occasions, including when you:

• Create a VAT online account with HMRC
• Enrol for any VAT accounting schemes 
• Send a VAT Return to HMRC
• Pay your VAT bill
• Reclaim any VAT paid on goods and services bought for business use 
• Issue VAT invoices and certain receipts to clients and customers
• Open a trading account on an online marketplace
• Set up accounts with certain suppliers
• Buy goods from VAT-registered suppliers
• Complete an EC sales list (Northern Ireland businesses only)
• Contact HMRC to discuss your VAT account
• Appoint an accountant or agent to deal with your tax affairs

If you purchase goods or services from VAT-registered suppliers in the EU, you should also provide your UK VAT number. Doing so will allow them to zero-rate the VAT charge on your order (apply a 0% VAT rate).  

Do I need to display my VAT number on my website?

There’s no legal requirement to display your VAT number on your website. However, most VAT-registered businesses display it in the footer section. 

Disclosing your VAT number on your website can enhance your credibility and help potential customers or clients make more informed choices.

If you sell through an online marketplace, the operator will also display your VAT number on their own website. 

Where can I find my VAT number?

You can find your UK VAT number in various places, including:

• Your VAT online account
• On your VAT registration certificate
• On any previous VAT Return
• In letters from HMRC about your VAT registration

If you’re unable to locate it, you can call HMRC’s VAT general enquiries helpline on 0300 200 3700.

Do all businesses have a VAT number?

No, only VAT-registered businesses have a VAT number. While not all businesses need to register for VAT, all types and sizes of businesses can – even those with taxable turnover below the registration threshold. This means you can register whether you’re selling goods or services as a sole trader, partnership, limited company, or not-for-profit organisation. 

You can’t register if you’re not in business. HMRC defines business as ‘a continuing activity carried on with the intention of making supplies for a consideration.’ In other words, providing goods or services in exchange for a form of payment. Non-business activities include pursuing hobbies and selling personal belongings.

Exemption from VAT registration 

Some businesses can apply for VAT exemption, meaning they don’t have to register for VAT even if their turnover exceeds the threshold.  

Your business may be exempt from registration if:

• Most of the taxable goods or services you sell are zero-rated (0% VAT rate)
• You’re a non-established taxable person making only zero-rated taxable supplies

You can apply to HMRC for exemption from VAT registration online or by post.

VAT registration ‘exception’ 

Under certain circumstances, you can apply for a VAT registration ‘exception’ if your taxable turnover exceeds the VAT threshold only temporarily. HMRC will require evidence showing why you believe your taxable turnover will remain below the VAT deregistration threshold of £88,000 over the next 12 months.

How to check a VAT registration number in the UK

HMRC provides an online service for checking UK VAT registration numbers. You can use this to:

• Check that a UK VAT registration number is valid
• Find out the name and address of the business to which the number is registered
• Prove when you checked a UK VAT number (this feature of the service is only available to UK VAT-registered businesses).

Alternatively, you can call HMRC’s VAT helpline on 0300 200 3700 (or +44 2920 501 261 if you’re outside the UK).

You cannot use this online service to find your own VAT number if you’ve recently applied to register and you’re still waiting to hear from HMRC. There’s a different service available for checking when you can expect a reply from HMRC about a recent application or query. 

Checking an EU VAT number 

If you need to check the VAT number of an EU-based business, you can use the European Commission’s VIES VAT number validation service.

How to get a VAT number in the UK

Most businesses register for VAT using HMRC’s online service. To do so, you’ll need to:

1. Sign in to your HMRC business tax account with your Government Gateway user ID and password (or create a new user ID if you don’t already have an account)
2. Select ‘Add a tax to your account to get online access to a tax, duty or scheme’
3. Check the box for ‘VAT and VAT services’ then click ‘Continue’
4. Select which VAT service you want to add
5. Answer a series of questions about your business to establish why you are registering for VAT
6. Provide information about yourself and your business (we outline the required information below)
7. Follow the final steps on the online form to complete your application

Information required by sole traders and partnerships

If you’re registering for VAT as a self-employed sole trader or a partnership, you must provide the following details for HMRC:

• National Insurance number
• An identity document (e.g. a passport or driving licence)
• Bank account details
• Your Unique Taxpayer Reference (UTR), if you have one
• Details of your annual taxable turnover, including the date you exceeded (or expect to exceed) the VAT threshold, if applicable

If you’re registering a partnership for VAT, you’ll also need to complete form VAT2 with details of each partner and then upload it with your application. 

Information required by limited companies

If you’re registering a company for VAT, you must provide the following details for HMRC:

• Company name
• Company registration number
• Date and country of incorporation
• The company’s Unique Taxpayer Reference
• Business contact details, including the registered office address or business address
• Details of annual taxable turnover, including the date you exceeded (or expect to exceed) the VAT threshold
• Description of business activities
• Business bank account details
• Information about Corporation Tax and (if applicable) Pay As You Earn (PAYE) 
• Your name, address, date of birth, and National Insurance number

You should receive a VAT registration certificate from HMRC within approximately 30 working days. This will be sent to your company’s registered office address or business address. 

If you’re unable to register online, you’ll need to register by post using the VAT1 paper form. Postal applications usually take longer to process.

1st Formations VAT Registration Service

At 1st Formations, we offer a VAT Registration Service for £39.99 +VAT. This is suitable for limited companies and limited liability partnerships (LLPs). You don’t need to have formed your company with us to use this service. 

Whether registration is compulsory or voluntary, one of our VAT experts will prepare the necessary registration documents on your company’s behalf and submit them to HMRC online. 

• A guide to commonly used VAT terms in the UK
• VAT registration for UK companies with non-resident directors
• Pros and cons of voluntary VAT registration

We can also assist with any questions you may have about your VAT registration, including guidance on how to set up your HMRC Government Gateway account. 

As soon as your application has been approved, HMRC will post your VAT registration certificate and company VAT number to your registered office or business address. 

Thanks for reading

We hope you’ve found this information helpful. Please comment below if you have any questions about his post, or contact us directly if you’d like to speak to someone about our VAT Registration Service.

Explore the 1st Formations Blog for more business advice, insights, and limited company guidance.