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Need help with UK VAT registration?
Not sure whether you must register, when your deadline starts, or which UK VAT rules apply to your business model? hellotax can review your setup and help you register correctly. Book a free consultation now.
Maria
Last Updated on 26 January 2024When do I need to register for VAT in the UK?
Businesses and online sellers need to register for VAT in the UK for a number of reasons. This applies to English sellers as well as foreign and European retailers who sell products in England. These are the main situations where UK VAT registration becomes mandatory.
1. Mandatory registration if the VAT threshold is exceeded in the next 30 days
- The threshold above which VAT becomes applicable is set at £90,000 of revenue in the UK.
- As soon as you realize that your turnover will exceed this threshold within the next 30 days, you must register within these 30 days.
- The “effective day of registration” is the day on which you realized that you had to register. You are liable for VAT from this day on.
- Example: Your turnover from May 10th, 2024 to May 9th, 2025 was more than £90,000. You must now get registered by June 30th and your “Effective Date of Registration” is June 1st.
2. Mandatory registration if the VAT threshold has been exceeded in the last 12 months
- You must also register if your taxable turnover for the previous 12 months goes above the UK VAT registration threshold.
- In this case, you must register within 30 days of the end of the month in which you exceeded the threshold.
- The effective date of registration is the first day of the second month after the month in which you went over the threshold.
- Example: If your taxable turnover goes above £90,000 on 15 July, you must register by 30 August. Your effective date of registration will be 1 September.
3. Mandatory registration of Northern Irish traders selling VAT free products
- Normally companies or sellers that only sell VAT-exempt goods and services do not have to register for VAT.
- However, this does not apply to Northern Irish sellers who source products from suppliers who are VAT registered in the EU.
- Once the cost of these goods exceeds £90,000, these Northern Irish businesses must also register for VAT.
4. Mandatory registration of foreign sellers
- The £90,000 UK VAT registration threshold generally does not apply to non-established taxable persons.
- If a foreign business makes taxable supplies in the UK, it may need to register for UK VAT from the first taxable supply. This can apply, for example, when overseas sellers store goods in the UK or sell goods locally in the UK.
- Foreign sellers should review their UK activities carefully to determine whether registration is required before sales begin.
5. Voluntary registration or application for an exception from registration
- UK businesses whose taxable turnover is below the £90,000 threshold can also register voluntarily. Voluntary UK VAT registration may be useful if you want to reclaim input VAT or prepare early for future VAT obligations.
- If your taxable turnover exceeded the registration threshold only temporarily based on the last 12 months, you may be able to apply for an exception from registration. This normally applies where you can show that your taxable turnover will stay below the deregistration threshold in the next 12 months.
If you are late registering for UK VAT you will still be liable to pay the VAT that would have accrued since the date you should have registered. This means: if you registered too late and perhaps did not even charge any VAT, you will pay the VAT debt out of your own pocket. Penalties and debt interest may also apply depending on how late the registration is. It is therefore important to take care of UK VAT registration at an early stage.
If you trade between the UK and EU, registering for VAT in the UK is only one step in your overall compliance journey. You may also need to manage customs declarations, import VAT, proof of export and different VAT rules depending on where your goods are shipped. To learn more, read our article on Brexit VAT compliance for UK sellers, where we explain the main post-Brexit VAT rules for ecommerce businesses and online sellers.
Not sure if you already need a UK VAT number?
If you sell through Amazon, store stock in the UK, or trade cross-border, the registration rules can become complex very quickly. hellotax can check your situation and guide you through the process. Speak to a VAT specialist
How does UK VAT registration work in England?
You can usually complete UK VAT registration online. Most VAT tasks are managed through your HMRC online account (still commonly known as the Government Gateway). To use it, you first need to create a Government Gateway user ID and password. Once this is set up, you can sign in to your HMRC VAT account at any time.
From this HMRC / Government Gateway account you can register for UK VAT, view your VAT registration details and submit your VAT returns under Making Tax Digital (MTD). You can also authorise an agent, such as hellotax or your local tax advisor, to file VAT returns on your behalf.
You can also register for VAT by post. The VAT1 form can be used to register by post for those who
- want to take advantage of the exemption
- want to take advantage of the flat-rate scheme for farmers
- who want to register a single division of an already registered business.
There are also a few other forms that must be submitted by post under certain circumstances.
- Form VAT1A must be submitted if an EU business sells products by mail order to customers in Northern Ireland
- Form VAT1B must be submitted if a UK company is importing products worth over £90,000 from the EU into Northern Ireland
- Form VAT1C must be submitted when disposing of assets for which refunds have been requested under the 8th or 13th Directive
After 30 working days you will usually receive a VAT registration certificate from HMRC. The certificate will either be sent to your VAT online account or delivered by post if you were unable to register online.
If you want support with the registration process or communication with HMRC, contact us for a free consultation.
Book a free consultation
Our VAT experts are happy to help you. Book a free consultation today!
What is the format of the UK VAT number?
| United Kingdom (England, Wales, Scotland) | Northern Ireland | |
| Name | VAT registration number (VRN) | VAT registration number (VRN) |
| Country Code | GB | XI |
| Format | GB + 9 Numbers | XI + 9 Numbers |
| Example | GB123456789 | XI123456789 |
To avoid problems with UK authorities and fines, you should take care of your UK VAT registration early. hellotax helps with this. Our VAT automation tool can also automate and simplify the process of filing VAT returns, corresponding with the authorities, monitoring your transactions and much more. Contact us today and find out more!
Book a free consultation
Our VAT experts are happy to help you. Book a free consultation today!
FAQ
What are the different VAT rates in the UK?
When do I have to submit my VAT return in the UK?
What are the deadlines for VAT registration in England?
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Let hellotax handle the registration process, deadlines and communication with HMRC so you can focus on selling. Book your free consultation now
Book a free consultation
Our VAT experts are happy to help you. Book a free consultation today!
