Your VAT taxable turnover includes the value of any goods or services you supply within the UK, unless they are exempt from VAT. This means you must also include any supplies you make that would be zero-rated for VAT.
When calculating your VAT taxable turnover you will of course include your sales, but for VAT purposes, you should also include the value of certain other types of supply, including:
You must not attempt to avoid registration by artificially separating business activities to reduce your turnover. You can find information about artificially separating business in the page in this guide: Do not avoid registering for VAT by artificially separating business activities.
You might be charged a penalty if you register for VAT late, so you should check both of these from time to time:
If you took over another VAT registered business within the last 12 months, then when you regularly check your turnover for the previous 12 months against the threshold, you should take into account the turnover of the business before you bought it as well as your own turnover.
If most of your supplies are zero-rated, you may be able to apply for exemption for registration.
You can apply for an exemption from VAT registration by filling in a VAT registration form and stating why you are applying for an exemption. If some of the supplies you make are VAT taxable you must also show that the VAT you would reclaim on your purchases would normally be more than the VAT you would charge on your sales.
If HMRC agrees you can be exempt from VAT registration, you must inform them of any relevant change in circumstances - for example, if you no longer sell mainly zero-rated goods or services.
If HMRC doesn't give you an exemption, you will become registered for VAT from the day you should have been registered. You will need to account for VAT from that date.
HM Revenue & Customs