VAT is a consumption tax that is levied on the value added to goods and services. It is not typically levied on goods sold for export or to buyers in other countries.
A VAT Certificate is an official document that certifies you have legally registered for VAT. It is accredited by HMRC and you receive it after completing your VAT registration.
It contains information about your company, the date of registration, the issue date, the deadline for filing VAT returns, bank information or the SIC code (trade classification).
Your company must include its VAT number on all invoices that include VAT so that your customers can see that you are registered with HMRC as an authorised collector of VAT.
How To View Your VAT Certificate
If your annual revenue is less than £85,000, you can register voluntarily, unless everything you sell is VAT exempt. After you have registered, you will be issued a VAT registration certificate.
- Sign in at the HMRC’s website
- Check your VAT Account (Making Tax Digital)
- Check your VAT Certificate
- Verify information
What are the advantages of being VAT registered?
- Once registered, you can recover VAT on any products and services purchased by your company. This must be compared against how much your company charges and receives in VAT payments throughout the year. If you have invested in machinery, property or information technology, you may be entitled to recover a small sum of VAT.
- By showing your VAT number, you give the impression to potential clients that you are bigger than you are. This can be useful when working with other firms. Some companies prefer it if you can generate a proper VAT invoice.
- Businesses that are VAT-registered are assigned a VAT number. This can be printed on invoices, letterheads or websites.
- If you provide HMRC with enough evidence, registration can be backdated for up to four years. This means a company may reclaim VAT on equipment still in use.