VAT registration

VAT adds not only a rate but a way of working: invoices have to be registered on time, the registration limit has to be watched, and an error in a source document turns into a suspended invoice and a damaged relationship with the buyer. Registration is therefore not the filing of an application but a rebuild of the books.

We do both halves: we handle the registration and set the work up so the first invoices go through.

When registration is compulsory and when it is a choice

The obligation arises once taxable supplies pass the threshold set by the Code; the threshold is revised, so we calculate against the current one rather than from memory. Missing the filing deadline means the tax office treats you as registered retrospectively – with liabilities assessed for the past period.

Voluntary registration makes sense when your customers are VAT payers who need the input credit, or when your own input VAT is high. That is something to calculate, not to feel: together with tax planning we show both scenarios in figures.

What the service covers

• whether it pays: the burden with and without VAT, given who your customers are;
• watching the point at which the threshold will be crossed, so the deadline is not missed;
• preparing and filing the registration application;
• setting the books up for VAT: source documents, contracts, product lines, commodity and service codes;
• preparing and filing the VAT payer’s data table – the thing that reduces the risk of invoices being stopped;
• support through the first reporting periods: registering invoices, watching the limit, the return.

The main risk of the first months

A new VAT payer has no positive tax history, which is exactly why its invoices get stopped more often. We build that into the work from the start: filing the data table, watching that codes and supply patterns line up. If an invoice is stopped anyway, unblocking applies; if it has reached risk status, so does removal from the list.

What it costs

It depends on whether you need only the calculation and the application, or the rebuild of the books as well. For clients on the monthly service, registration is part of the agreed scope.

Common questions

How long does registration take?

The application is considered within days; preparing the books depends on the state they are in. We give a timescale after a short conversation about your volumes and your customers.

Can VAT registration be given up later?

Cancellation is possible on the grounds the Code provides, and it has consequences for stock on hand that need calculating in advance. That is separate work, and we state its scope before starting.

Can a sole trader be VAT-registered?

Yes – on the general system and on group three at the rate that includes VAT. The detail by group is on the sole trader bookkeeping page.

What happens if registration is late?

The tax office assesses liabilities from the date the obligation arose, with no right to input credit for that period. That is why we watch the approach to the threshold rather than the fact of crossing it.