What happens once you are VAT-registered
Your obligations once you are VAT-registered, and what you gain
Once registered, your obligations begin immediately from the effective date on your VAT certificate. Four things change on that date.
Your four new obligations
- Charge VAT on taxable supplies: add 20% to all standard-rated invoices
- Issue valid VAT invoices: every invoice must show your VAT number, the VAT amount, and the net and gross totals
- File quarterly VAT returns: via Making Tax Digital using Xero
- Pay the net VAT to HMRC: by the 7th of the second month after each quarter-end
What you gain
You can reclaim the VAT element of most business purchases, including pre-registration costs on goods still held and services received within the six months before registration. We review your pre-registration costs when setting up your first return.
💡 Important: Your obligations run from the effective date on your certificate, even if the number has not yet arrived. You cannot show VAT as a separate line until you have your number, so do not issue VAT invoices in the meantime. Instead, raise your prices to cover the VAT, explain to customers that registration is pending, then reissue proper VAT invoices once your number comes through. The VAT still has to be accounted for from the effective date either way.
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