For those of us running businesses here in the UK, a VAT number is basically our unique ID when it comes to Value Added Tax. If my business's taxable sales go over a certain limit (we'll get to that!), I have to register for VAT. Once I did that, HM Revenue and Customs (HMRC) gave me my very own VAT number.
This little number is super important – I need it for my invoices, when I'm doing my tax returns, and pretty much any time I'm trading with other businesses.
Whether I was just starting out as a sole trader or, as I am now, running a limited company, figuring out when and how to use my VAT number has been key for keeping things above board. Trust me, getting clear on this stuff has helped me avoid any nasty surprises like penalties and generally made my dealings with both my suppliers and my customers a lot smoother.
Let's dive in!
Essentially, HMRC assigns this number to businesses like mine that need to charge VAT on the goods or services we sell. The main trigger for me was when my VAT taxable turnover (that's all the sales that aren't VAT-exempt) looked like it was going to go over £90,000 in a rolling 12-month period. That was my cue to get registered.
The real purpose of my VAT number is to help HMRC keep track of all the VAT transactions. When I send out an invoice, my VAT number has to be clearly displayed. This way, my customers and, of course, the tax authorities can see that my business is properly registered for VAT.
Having this number also means I can reclaim VAT on business purchases I've made, which can be a real help. Plus, it gives suppliers and customers confidence that I'm operating legitimately within the tax system. It's also pretty essential if I'm trading with other VAT-registered businesses, both here in the UK and sometimes abroad.
You can usually spot a UK VAT number quite easily. Mine, like most, starts with "GB" and then it's followed by nine digits.
So, to break it down:
I always double-check that I'm using the correct format on all my official documents, especially invoices and any letters I send to HMRC or my business partners. Most businesses, including mine, just use the straightforward nine-digit code after the "GB".
This is a point that confused me a bit at the start! Your VAT number is not the same as your Company Registration Number (CRN). They serve completely different purposes. I use my VAT number for anything tax-related – VAT returns, invoicing, tax questions. My CRN, on the other hand, was given to my company by Companies House when I incorporated it, and it's purely to identify my business as a legal entity in the UK.
My CRN is usually eight characters long (a mix of letters and numbers, like 12345678 or AB123456). It has absolutely nothing to do with charging or reclaiming VAT. I've learned to keep these two numbers distinct because they really are for different things.
Figuring out if I needed a VAT number came down to a few things: my business's turnover, whether I wanted to register even if I didn't have to, and sometimes, where my business is based if it's not in the UK.
The main reason most of us have to get a VAT number is if our taxable turnover goes over the limit set by HMRC. As of 2025, that magic number is £90,000 in any rolling 12-month period.
"Taxable turnover" for me includes all the sales that aren't exempt from VAT – so goods and services I sell in the UK, any digital products, and even sales that are zero-rated. I make sure to keep a really close eye on my turnover, because as soon as I expected to cross that £90,000 line, I knew I had to register.
If your turnover does go over that £90,000, you've got 30 days to get yourself registered. I definitely didn't want to risk penalties by being late, or having to pay VAT from a past date.
Here's something interesting: you can actually choose to register for VAT even if your turnover is below that £90,000 threshold. I considered this early on. The upside is that it allows you to reclaim VAT on your business expenses, which can save money.
Some also feel it makes their company look a bit more established, and it can make trading with other VAT-registered companies smoother.
However, if I had gone for voluntary registration, I would have still had all the legal duties – charging VAT on my sales and doing regular VAT returns, no matter what my turnover was. That means more admin, so I had to weigh up the pros and cons carefully.
It's not just for us UK-based folks. If your business is located outside the UK but you're selling goods or services to customers here in the UK, you might find you need a UK VAT number.
I've heard this often applies if you sell goods directly to UK consumers, if you store goods in the UK ready for sale, or if you supply certain digital services.
For example, with distance selling, if your sales to UK customers go over that £90,000 threshold, you'd need to register. And if you're a non-UK company importing goods into the UK to sell, you generally have to register for VAT regardless of your turnover.
Before I even started the application, I got all my paperwork ready. I needed things like:
Since I run a limited company, I also needed my incorporation documents. If I were in a partnership, I'd have needed the partnership agreement. Proof of my business address was also important.
I had to apply for my UK VAT number directly through HMRC. The main way to do it, and the way I did it, is via HMRC's online service, which works for most businesses.
Here's my experience:
If for some reason you can't apply online, I believe you can use a paper form (VAT1) and send it by post, but I've heard that's a slower process. The key thing is to be super accurate with all the details.
After I hit submit on my application, HMRC usually aims to process VAT registrations within about 14 to 30 days. My online submission was probably quicker than if I'd posted it.
Of course, these times can change. If HMRC needs more information from you, or if something in your business profile flags up extra checks, it might take a bit longer. I've also heard it can take longer during really busy periods.
Eventually, I received a confirmation letter and my shiny new VAT number in the post. An important thing I learned is that you can actually start charging VAT from your "effective date of registration," even if you're still waiting for the physical VAT number to arrive. I kept copies of all my emails and documents, just in case.
It's not just about having my own VAT number; sometimes I need to check if a supplier's VAT number is valid before I use it on an invoice or for my accounts. Getting this right helps me avoid errors, potential financial hiccups, and even fraud.
If I'm dealing with businesses in the EU, or for certain cross-border transactions, I often use the VIES (VAT Information Exchange System). It's an online tool from the European Commission. I just type in the VAT number and select "United Kingdom" from the list.
If the number is valid, VIES shows a confirmation, sometimes with business details like the legal name and address. If it's not valid, it tells you clearly, which is my cue not to rely on that number. It's a good habit for staying compliant with VAT rules when working with EU partners.
For UK-based checks, HMRC has its own online VAT number checking service right on their official website. I find this really handy. It confirms if a VAT number is currently registered and active.
HMRC also has a helpline and lots of guidance documents if I get stuck. If I ever needed confirmation in writing, I know HMRC can provide that if I request it, though they usually send it by post. Using HMRC's service is particularly good for my domestic transactions.
Once I had my VAT number, I needed to make sure I was using it correctly in all my business dealings to stay on the right side of HMRC regulations. It's all about transparency for my clients and protecting my business.
When I issue VAT invoices, my UK VAT number is an absolute must-have. Every VAT-registered business like mine has to clearly show its VAT number on all invoices we give to customers. And, of course, the rates and amounts of VAT I've charged must be shown for each item it applies to.
Even if I issue a simplified VAT invoice (which I can do for amounts under £250), my VAT number still needs to be on there. The same rules apply if I have to issue a credit note or an amended invoice. I always try to make sure my invoices are accurate and easy to read.
If your business has a website, like mine does, and you're VAT-registered and use the site for business, it's actually a legal requirement here in the UK to display your VAT number. This applies to e-commerce stores, online catalogues, and any service provider sites where you're doing business.
I've put my VAT number in an easy-to-find spot on my website – some people use the footer, the "About Us" page, or include it on invoices and order confirmations sent through the site. It just builds trust and shows I'm compliant with UK law.
Getting the VAT number wasn't the end of the story! There are several ongoing things I need to do to stay compliant and avoid any penalties. Good record-keeping and keeping my registration details up to date are top of my list.
I have to submit regular VAT returns – for me, it's usually quarterly – and I do this using HMRC's online platform. On each return, I report my total sales, my purchases, the amount of VAT I owe, and any VAT I can reclaim. Missing deadlines or giving incorrect info can lead to fines or interest charges, so I'm pretty careful here.
And record keeping? Oh, it's crucial. I have to keep records of all my sales and purchases, VAT invoices, and receipts for at least 6 years. This includes digital copies now, especially with the Making Tax Digital rules. I try to keep these documents well-organized so they're easy to review if HMRC ever wanted to do an audit.
Life happens, and business details can change. If things like my trading address, the type of business activities I do, or even my legal structure were to change, I'd have to tell HMRC straight away. Not keeping them updated can cause communication problems or compliance headaches.
Common things I know I'd need to report include a change in my company name or address, new directors or partners (if applicable), different business contact information, or a change in the nature of goods or services I provide. I can usually update these details online through my HMRC VAT account.
There may come a time in the life of your business that you no longer want to register for VAT. Perhaps if my business closes down, or if my taxable turnover drops significantly. Deregistering has a specific process and deadlines set by HMRC, so I'd need to follow those.
I must deregister my UK VAT number if my business stops trading, if it joins a VAT group, or if I'm no longer making any taxable sales. If my taxable turnover drops below the deregistration threshold – which is £88,000 as of 2025 – I can apply to deregister voluntarily.
So, key times are: when my business closes or I transfer it to someone else; when I'm no longer trading or making taxable sales; or when my turnover drops below the threshold and I decide to ask for deregistration.
Not deregistering on time when I'm supposed to can lead to penalties, so HMRC needs to be notified within 30 days of whatever event triggers it.
If I ever need to start the deregistration process, I can usually apply online through my HMRC VAT account, or I could fill in a paper form (VAT7) and post it. I'd need to provide accurate details about my business and why I'm deregistering.
The steps would likely involve logging into my Government Gateway account, finding the 'Deregister for VAT' option and following the instructions, and making sure all my outstanding VAT Returns are submitted and any VAT I owe is paid.
Once HMRC approves the deregistration, they'll let me know the effective date. Even after deregistering, I'd still have to keep my VAT records for at least six years.
To confirm if a UK VAT number is legitimate, the most reliable method is using the HMRC VAT number checker available on their official website. When dealing with businesses in the EU, the European Commission's VIES (VAT Information Exchange System) website is an invaluable tool.
Securing a UK VAT number generally involves registering for VAT with HMRC. This becomes necessary once your business's taxable turnover reaches the specified threshold. The application is typically completed online, and following HMRC's approval of your registration, they will issue your unique VAT number.
Your key VAT registration details are always printed on the VAT registration certificate that HMRC sends out. Additionally, this information is readily accessible by logging into your HMRC online account.
Unfortunately, HMRC doesn't provide a public directory where you can search for a company's VAT number using only its name. The usual practice is to request the VAT number directly from the business itself or to find it on their invoices or other official communications.
If you have specific VAT questions, HMRC provides a few ways to get in touch. Many find calling HMRC's VAT helpline on 0300 200 3700 helpful. Alternatively, their online services can be used, and for more formal matters, you can find their postal address on the HMRC website for written correspondence.
So, there you have it. My take on UK VAT numbers and registration. It might seem daunting initially, but broken down, it's manageable.
Understanding when you need to register, how to apply, and what responsibilities come with having a VAT number are all key parts of running a successful UK business. It's about staying compliant while also taking advantage of the benefits like reclaiming VAT on your business expenses.
Whether you're just approaching that £90,000 threshold or considering voluntary registration for other reasons, getting to grips with VAT is an important step in your business journey.
Good luck with your venture, and remember to keep those VAT records in order!