VAT 68 Form: Request Transfer of VAT Registration Number
When a business changes hands or shifts to a new legal structure, there’s more involved than updating a company name or switching directors. One detail that often gets overlooked, but has a significant impact, is the VAT registration number. For many businesses, this number forms part of their public identity, appearing on invoices, contracts, supplier records, online accounts, and official paperwork.
If you’re buying a business, incorporating as a limited company, or reorganising your structure, the VAT 68 Form is the key tool that allows you to keep the same VAT registration number through the transition. Understanding how the process works not only preserves continuity but also reduces administrative disruption at a time when clarity and stability matter most.
This guide walks you through everything you need to know about the VAT 68 Form—why it exists, who can use it, how to complete it correctly, and why professional support can make the process far smoother.
Why Would You Need to Transfer a VAT Registration Number?
Although you could apply for a brand-new VAT number, doing so often causes more trouble than expected. A long-standing VAT number can hold practical value: customers recognise it, suppliers rely on it, and software systems may be built around it. Suddenly switching to a new one can trigger accounting issues, confusion with recurring invoices, and the need to update countless internal and external records.
Transferring the VAT number makes the business transition almost invisible from an administrative standpoint. This is particularly important in situations such as:
- Purchasing a Business As a Going Concern – If the business continues trading without interruption, transferring the VAT number ensures invoices, purchase orders, and VAT reporting remain consistent.
- Changing your Legal Structure – For example, a sole trader incorporating into a limited company may want to preserve business continuity through the same VAT registration.
- Partnership Changes or Succession Planning – When ownership shifts but the business carries on, keeping the existing VAT number avoids unnecessary complications.
In short, transferring the VAT number keeps the business running smoothly at a time when change is already happening behind the scenes.
Who Is Eligible to Use the VAT 68 Form?
The VAT 68 Form is specifically intended for scenarios where a VAT-registered business is transferred to another legal entity. You can use it if:
- You’re taking over an existing business and want to retain the seller’s VAT number
- You’re restructuring, such as moving from sole trader to limited company
You’re forming or dissolving a partnership and the VAT registration needs to move accordingly
One key condition:
Both the old owner (the transferor) and the new owner (the transferee) must agree to the transfer. HMRC will not process the request without signed declarations from both sides.
Once transferred, the previous owner’s VAT registration is cancelled, and the new owner becomes legally responsible for VAT from the date of transfer onward.
How to Complete the VAT 68 Form: A Clear Step-by-Step Walkthrough
Although the form is only a few pages long, accuracy is essential. Small errors, incomplete details, or missing signatures can delay processing or lead to misunderstandings later.
Here’s what each section covers:
Section 1: Transferor (Previous Owner) Details
This part gathers the current VAT information, including:
- Existing VAT registration number
- Business name and registered address
- Contact details
- Effective date of the transfer
Both parties must sign this section. The effective date is particularly important, as HMRC uses it to determine when responsibility for VAT shifts to the new owner.
Section 2: Transferee (New Owner) Details
Next, the new owner provides:
- Legal business name and address
- Date of transfer
- Description of continuing business activities
- Relevant National Insurance details (for individuals or partnerships)
Again, signatures from both parties are required. Double-check that the business name and address match Companies House or other official records.
Section 3: Declaration by the Transferor
The transferor confirms they agree to hand over the VAT registration number and that the details provided are accurate. A signature and date are required.
Section 4: Declaration by the Transferee
This mirrors Section 3, but from the transferee’s perspective. Signing confirms they accept responsibility for ongoing VAT obligations connected to the registration.
Common Mistakes When Completing the VAT 68 Form
Even though the form appears straightforward, errors are surprisingly common. Avoid issues by watching out for:
- Missing or Incomplete Information – Any gaps can delay processing. Before submission, review each section line-by-line.
- Incorrect Transfer Dates – The effective transfer date determines who is responsible for VAT at specific points. Mistakes can cause accounting inconsistencies.
- Overlooking Joint Liability – Both parties may be jointly liable for VAT already owed before the transfer. Clarify responsibilities through written agreements.
- Not Updating Stakeholders – Once the transfer is complete, customers, suppliers, and software providers must be informed. Failing to update records can lead to mismatched invoices and payment issues.
Taking the time to complete the form correctly helps avoid avoidable back-and-forth with HMRC later.
Submitting the VAT 68 Form: Email or Post
After completing the form:
Email Submission
Send a scanned copy to btc.changeoflegalentity@hmrc.gov.uk.
Include the VAT registration service (VRS) number in the email subject line for quicker routing.
Postal Submission
If mailing, send the form to the address noted by HMRC on the form.
Always keep your own copies, including proof of submission. These are invaluable if HMRC requests clarification or if there is any disagreement in future.
What Happens After You Submit the Form?
Once HMRC receives the VAT 68 Form, they will review the transfer request. If everything is complete and correct:
- The previous VAT registration will be cancelled from the agreed date
- The new owner will assume responsibility for the VAT account from that point
- HMRC will issue confirmation of the updated registration details
If HMRC identifies any inconsistencies, they may request additional information, so it’s important to monitor email and correspondence in the period following submission.
But Remember:
Both the transferor and transferee can be held jointly liable for VAT debts incurred before the transfer.
This makes it essential to keep detailed records and clear agreements between both parties.
Why Professional Support Is Worth Considering
Although the VAT 68 process appears simple, the implications of getting it wrong can be significant—incorrect transfer dates, liability disputes, or mismatched VAT records can all lead to complications with HMRC.
This is where professional guidance can make a meaningful difference. At Sterling & Wells, our team supports businesses through every stage of the VAT transfer process, from assessing whether a transfer is appropriate to completing the form and managing compliance afterward. Experienced advisors can help you understand your obligations, avoid common pitfalls, and ensure a smooth transition that protects your business and stakeholders.
Conclusion
The VAT 68 Form plays a crucial role when a business is transferred or undergoes a structural change. By understanding how the form works, taking care when completing it, and seeking expert support when necessary, you can ensure your VAT registration continues seamlessly without disrupting day-to-day operations.
If you’re planning a business transfer or restructuring and want confidence that your VAT obligations are handled correctly, Sterling & Wells is here to help every step of the way.
Sterling & Wells
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