Questions about the business - reason for registering for VAT

Taking over a VAT registered business as a Transfer of a Going Concern

HM Revenue and Customs considers the business to be transferred as a going concern if:

• another person takes over the assets of the business after the current owner retires
• the business and its assets are sold to someone else
• part of the business that is capable of being operated separately is sold to somebody else

The VAT registration is normally cancelled when the business is transferred as a going concern. However in some situations, the new owner of the business can apply to keep the VAT Registration Number. During the registration process you will be asked if you want to keep the previous owner's VAT Registration Number.

Changing the legal entity of a VAT registered business (for example, from sole proprietor to Limited Company)

Please select this option if the business is changing legal entity. For example, the business is currently registered for VAT as a sole proprietor but is changing the business into a limited company.

The new business entity can apply to keep the existing VAT Registration Number. During the registration process you will be asked if you want to keep the VAT Registration Number that belonged to the previous business entity.

Setting up a VAT group

Two or more companies may register as a single taxable 'person' - known as a VAT group. The VAT registration must be completed by, or on behalf of the representative member of the VAT group. Further information about the VAT group and details of the other members of the VAT group will need to be provided using the VAT50 and VAT51 forms. These forms will be available for you to download whilst completing the VAT registration application.

Making or intending to make taxable supplies

All businesses who register for VAT will be making or intending to make taxable supplies. This should only be selected if none of the other available options are more appropriate to the business. Taxable supplies are any supplies of goods or services, including barter, that are made in the UK and are not exempt from VAT or outside the scope of VAT. Supplies of goods or services on which the standard rate, reduced rate or zero-rate of VAT applies are all taxable.

Is established or has a fixed establishment in the UK and makes or intends to make taxable supplies only outside the UK

For VAT purposes, it is deemed that the business is established or has a fixed establishment in the UK if:

• the place where essential management decisions are made and the central administration of the business is carried out is in the UK and/or
• the business has a permanent physical presence that has the human and technical resources to make or receive taxable supplies in the UK

Please register using this option if the business meets the above criteria and all the taxable supplies of the business are outside the UK.

Wants to apply for exemption from VAT registration

Some goods and services are zero-rated which means they are taxable for VAT, but the VAT rate is 0%. If the supplies of the business are solely or mainly zero rated then the business can apply for exemption from VAT registration.

Read more about what goods and services are zero rated.