Complete Guide to VAT Registration – Online & Offline

March 28, 2025

11 min read

VAT or Value Added Tax is a kind of tax that is charged on the sale of goods and services to the ultimate consumers, and it is charged by the Central Government. VAT is a tax that is paid by the producers or manufacturers of the goods and services by levying it on the customers who buy the goods or avail the services. It is basically a charge on the value that is added to a product and it would have to be paid by the final consumer as per the rules and regulations stipulated. All businesses including manufacturing units and other firms/organizations are bound to be registered under the VAT registration act of the respective of state in which the organization is registered.

Meaning of VAT Registration

VAT registration is basically a process in which entrepreneurs or traders list their business with the government as active in producing/manufacturing and selling goods. VAT registration is a mandatory process with respect to all businesses or traders who manufacture or sell goods/products. The VAT registration can be done virtually. The manufacturers or traders are mandated to obtain their VAT registration if the annual turnover is more than 5 lakhs or 10 lakhs (depending upon the rules of their respective state). VAT registration can be done easily without much hassle.

Advantages of VAT Registration

Few of the many benefits of VAT registration:

The so-registered company will have certain authenticity and other traders will have more faith in doing business with it. It is a kind of legal surety that it is a legitimate business.
It is taxed on multiple stages with a feature to allow ‘Input tax Credit’ at an initial stage that can be appropriated against the liability of VAT on any subsequent sale.
The benefit to claim ‘Set-off’ is available through VAT registration. ‘Set-off’ claim is nothing but the difference between VAT paid to the supplier by the business and the VAT received by the business from its customers. Therefore, the business only needs to be pay government and can dos so by deducting the VAT already paid from what the customer pays the business.
VAT registration is only mandated only if the turnover of the business crosses 5 lakhs or 10 lakhs (depending on the rules of the state the business is registered in). Therefore having a VAT registration makes the business look established, which helps in the expansion of the business as it appeals more to other entrepreneurs.
VAT status can be easily known by using the registered VAT number, and there is no need to go through the difficulty of going through loads of papers.
Once a business has VAT registration, it becomes eligible for refunds from VAT that is the business can claim the taxes paid by it in another country for any good purchased there.

VAT Registration

There are minor difference in various states regarding the registration of VAT as VAT is dealt with the by the states individually, however, the procedure is simple. The basic steps required to register VAT are:

The application for VAT registration should be filled and submitted along with the necessary documents to the local VAT office.
The documents that will be required for VAT are as follows:
Incorporation Certificate of the company
Memorandum of Association Articles of Association of companies
The details of those who are a part of the firm
Address proof of company’s director (Rental agreement or lease agreement)
Company’s PAN card or sole proprietor’s PAN card in case of a sole proprietorship
Identity Proof of Company’s Director
Deed of Partnership in case the entity is that of a Partnership firm
Passport-sized photo of the firm’s Director
The details that will be required for the registration of VAT for a business are:
Dealer’s name
Registered name of the company
The registered address of the company
Registered phone number of the company
Registered email id of the company
Details of either Director/Managing Director
Details of the authorized signatory
Date of incorporation of the company or date the business commenced
Nature of business
Description of the products dealt with by the business
List of all the Directors
Details of the Bank Account
The officer in charger from the VAT office will conduct a physical inspection of the company within 3 days of submitting the application and the required documents.
Post the inspection, the business will be required to pay a fee deposit.
Once the fee has been paid, the allotment of the Taxpayer Identification Number will happen and the certificate of VAT will be issued within one day.

Online VAT Registration

VAT registration can also be done online by following the simple steps below:

The person registering should visit the official website of VAT registration of the state in which the business is registered.
Several details would be asked and that needs to be filled inappropriately.
Any documents requested must be scanned and submitted on the official website.
The website would then be allotted a temporary VAT number.
On completing the verification process including that of verifying documents, other details, etc., the VAT registration would be done and a permanent VAT registration number will then be allotted to the business.

Process to Check VAT Registration Status Online

The status of a business’s VAT registration can be checked online by following the below steps:

The person needs to visit the official VAT registration website of his/her respective state in which VAT registration had been applied for.
The person needs to put in his/her credentials or the temporary VAT number that was allotted to him/her or to the business.
The official page will then show the VAT status along with the dealer status.

Requirements or Documents For VAT Registration

You’ll need to gather some crucial documents to ensure a smooth registration process. Let’s take a look at the list:

Incorporation Certificate: For companies, this is your official birth certificate!
MoA (Memorandum of Association) & AoA (Articles of Association): Exclusive for companies, these documents lay down the foundation and rules of your firm.
Details of Stakeholders: Who’s involved in your firm? This could be partners, directors, or any key person.
PAN Card: If you’re a company, you’ll need the company’s PAN. For a sole proprietorship, the individual’s PAN is a must.
Passport-sized photographs: A passport-sized photograph of the director to put a face to the name.
ID: A valid ID proof of the company’s director is essential.
Rental/Lease Agreements: Whether you’re a big company or a sole proprietor, where you operate from matters. This document proves just that.
Partnership Deed: Operating with partners? This deed lays down the rules of engagement.
Director’s Address Proof: Got a lease or a rental agreement? That’ll do the trick!

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Reasons to Register a VAT

If you’ve ever wondered, “Why should I register for VAT?” you’re in the right place. Let’s break down the reasons:

Stay on the Right Side of the Law: By registering for VAT, you’re legally secured. It’s like putting on a seatbelt – better safe than sorry!
The Set-Off Perk: Registered? Then you can easily use the set-off. Imagine it like a buy-one-get-one-free deal; you can claim back the VAT you’ve paid on business-related goods or services. Handy, right?
Lookin’ Good, Company!: Being VAT registered can give your company an established image. It’s like wearing a sharp suit to a meeting; people tend to take you more seriously.
Get Money Back with VAT Refunds: Sometimes, you might end up paying more VAT than required. The silver lining? If you’re registered, you can claim a VAT refund. It’s like overpaying at a food truck and then getting a surprise extra taco!
Flex that VAT Status: Once registered, you get a VAT status. It’s a little badge of honor, showing clients and suppliers you’re legit and operate above board.

How to Check VAT Registration Status?

If you need to check your VAT registration status, follow this guide:

Access the Official Portal: Begin by navigating to the official VAT registration website. You’ll be able to access the VAT certificate Online, too.
Authentication: Upon arrival at the site, you will be prompted to provide relevant credentials. This might be your business login details or the VAT number you were assigned upon successful registration. You can do a VAT number check to find out your number.
Retrieve Your Status: Once your credentials, including the VAT identification number, have been entered accurately, submit the information. The system will then promptly display your current VAT registration status.

Fees for VAT Registration

VAT registration fee is Rs. 500.
Professional tax fee depends on the type of business that is to be registered and the turnover of the business.

On the basis of the type of business to be registered which are:

Sole Proprietorship firm – Rs. 1,000
Partnership firm – Rs. 1,000 for each partner
Registered Company – Rs. 2,500

On the basis of the amount of turnover of a business, the fee to be paid would be:

For a turnover of Rs. 2 lakhs to Rs. 10 lakhs – Rs. 3,000
For a turnover of Rs. 10 lakhs to 25 lakhs – Rs. 6,000
For a turnover exceeding Rs. 25 lakhs – Rs. 10,000

VAT Registration FAQs:

1. What is the meaning VAT?

VAT is a Value Added Tax that was introduced in order to replace the Sales Tax. It is a multi-stage levy tax.

2. Who all are mandated to register for VAT?

Any trader/manufacturer or business that is either involved in producing goods or in selling them are mandated to register for VAT if their annual turnover is 5 lakhs or 10 lakhs, as according to the rules of their respective state.

3. What is a TIN with respect to VAT?

A TIN is a Tax Identification Number that will be allotted to the business that has applied for VAT registration and has been registered for VAT after the local VAT authorities are satisfied with the documents, verification, etc. of the business that registered for VAT.

4. What should a trader do after applying for VAT registration until the VAT registration is complete?

On successfully applying for the registration of VAT, the concerned trader or business will allotted a temporary VAT number that he/she can use until the registration process is complete from the end of the authorities.

5. Can VAT registration status be checked online?

Yes, VAT registration status can be checked online by logging on to the official website and by putting in your credentials/temporary VAT number in order to check the status of registration for VAT.

6. What is set-off? Is it a boon or a bane to a trader?

Every trader will be liable to pay VAT to his/her supplier and will also be entitled to receive VAT from his/her customers. Set-off is when the difference hat is the VAT that is already paid by the trader to the supplier can be deducted from the VAT that the customers paid them, while paying to the government. Therefore, it is definitely beneficial to the trader who is registered under VAT to claim a set-off.

7. What is a VAT refund?

If a trader/manufacturer or business pays any tax in European countries for those goods and services that were bought from there, then the concerned person or business is entitled to a VAT refund to the extent of the tax that was paid in the country.

8. What is the rate of VAT?

The rate of VAT differs on the basis of each product or service for which it is in question. However, generally it ranges from about 4% to 12.5% as according to the category in which the goods/services falls.

9. Do associations have to register for VAT?

Yes, associations, cooperatives, clubs, banking institutions and insurance companies are also mandated to register for VAT if their turnover or income exceeds the limit as specified according to the rules and regulations of the concerned state in this regard.

10. Is it safe to register for VAT online?

It is safe to register for VAT on the official online platform. Further, it is an easier, simpler and convenient method of registering since it can be done from anywhere with an internet connection, and the status of VAT registration can also be checked. However, the required documents need to be scanned properly and uploaded in the website for verification.

11. How can I get VAT registration?

To obtain VAT registration, visit the official tax authority’s website or office, submit the required documents and application form, and upon verification, you’ll be assigned a Vat Registration Number formalizing your registration. You will also receive a Vat Registration Certificate after that.