VAT68: keeping a VAT number when a business changes hands

Who needs it

• Buyers taking over a business who want to keep the seller's VAT registration number.
• Businesses changing legal status, such as a sole trader incorporating as a limited company.
• Someone taking over the VAT responsibilities of a person who has died or is too ill to manage their affairs.

What you need before you start

• An application to register for VAT for the new owner. HMRC's VAT Notice 700/9 says VAT68 must be completed with one.
• The VAT registration service (VRS) number from that application, if you email the form.
• Agreement from both seller and buyer to the legal consequences of moving the number.
• For a death or illness: the date of death or when the illness began, and a copy of any Power of Attorney.

How to file VAT68

1. 1Agree with the seller that the number will transfer, and that you both accept the consequences.
2. 2Apply to register the new owner for VAT. Allow time for HMRC to process it.
3. 3Complete VAT68 from GOV.UK.
4. 4Email it to btc.changeoflegalentity@hmrc.gov.uk with the VRS number as the subject, or post it to the address on the form.

When VAT68 applies

HMRC's form page describes two uses: taking over a company and wanting to use the previous owner's VAT number, and changing the status of your business, such as moving from sole proprietor to limited company. HMRC's changing-your-details guidance adds a third: taking over the VAT responsibilities of someone who has died or is too ill to manage their affairs, which must be done within 21 days.

In each case you register for VAT and send VAT68 as well. HMRC updated the form in July 2026, so download it fresh rather than reusing an old copy.

What the new owner takes on

VAT Notice 700/9 says both seller and buyer must agree to the consequences, which are legally binding. The buyer becomes liable for any VAT outstanding on the seller's registration, including VAT on stock and assets the seller kept. The seller loses any right to VAT repayments or unclaimed input tax for periods before or after the transfer.

The buyer also takes over any unclaimed bad debt relief, and must repay input tax the seller claimed on supplies that later become the subject of a supplier's bad debt relief claim or stay unpaid after 6 months.

If you'd rather not take on that history, the buyer registers with a new number and the seller cancels with VAT7.

Sending the form

Email VAT68 to btc.changeoflegalentity@hmrc.gov.uk using the VRS number as the subject heading, or post it to the address printed on the form. HMRC's Notice 700/9 also mentions requesting the transfer through HMRC online services.

Common mistakes

• Sending VAT68 on its own. It has to accompany an application to register for VAT.
• Keeping the number without weighing up the old liabilities. The buyer takes on outstanding VAT from the seller's registration.
• Assuming customs or excise registrations move with the VAT number. They generally need applying for again.
• The seller cancelling the registration with VAT7 when the number is meant to transfer.