The VAT Registration Estimator has been developed after feedback from small businesses suggested an online tool would be helpful to show when their turnover could require businesses to register for VAT and its effect on profits.

A VAT-registered business must charge VAT on eligible sales and can usually reclaim it on eligible purchases. There are around 300,000 new VAT registrations each year.

The VAT Registration Estimator is a guidance tool designed to help businesses decide if VAT registration is required and allows users to experiment with different inputs and outputs. It cannot provide bespoke business advice.