UK VAT registration

In the United Kingdom, the requirement to register for value added tax (VAT) depends on the level of taxable turnover and the nature of the supplies, with different rules applying to U.K.-established and non-established businesses. 

For U.K.-established businesses, VAT registration is mandatory once taxable turnover exceeds £90,000 in any rolling 12-month period. This is the statutory domestic VAT registration threshold under U.K. VAT law. Businesses may also opt to register voluntarily below this threshold. 

There is no VAT registration threshold for non-U.K. established businesses. Overseas businesses making taxable supplies in the U.K. are generally required to register for U.K. VAT from the first taxable supply, unless a specific simplification or reverse-charge rule applies. 

U.K. businesses making cross-border B2C supplies of goods or digital services to EU customers must consider the EU One-Stop Shop (OSS) threshold of €10,000 for total EU sales. Exceeding this threshold requires registration for the EU OSS (via an EU member state) or local VAT registration in each relevant country. The U.K. is not part of the EU OSS scheme following Brexit. 

There are no domestic simplification thresholds for most non-resident activities. Registration is typically required once the relevant taxable activity is undertaken, regardless of turnover, for non-U.K. businesses or specific cross-border business models. 

Foreign businesses may need to register for VAT in the U.K. if they engage in the following activities: 

• Importing goods into the U.K. for sale (imports trigger VAT at the point of customs clearance) 
• Selling goods or services in the U.K. directly to U.K. customers (including non-established sellers making taxable supplies) 
• Supplying electronically supplied services, digital products, or telecommunications services to U.K. consumers where the U.K. reverse charge does not apply 
• Making B2C supplies of goods to U.K. customers where the overseas seller is treated as the supplier under U.K. marketplace or import VAT rules 
• Holding inventory in the U.K. for sale to U.K. customers (for example, in a warehouse or fulfilment centre) 
• Operating ecommerce models that deliver taxable goods or digital services into the U.K. 

 In addition, registration may be required where a business makes zero-rated or exempt supplies, if it also makes standard-rated taxable supplies and exceeds the U.K. VAT registration threshold. 

To register for VAT in the U.K., applicants (resident or non-resident) typically need to provide the following:

• Completed U.K. VAT registration application (submitted online via HMRC)
• Legal entity details: company name, legal form, place of incorporation, directors/owners, registered address
• U.K. or overseas bank account details and financial contact information
• Description of business activities and expected U.K. taxable turnover
• For non-U.K. applicants: evidence supporting the nature of U.K. taxable supplies (contracts, invoices, logistics arrangements)
• Details of any U.K. establishment or confirmation that the business is non-established
• Power of attorney for a U.K. tax agent (if one is appointed to act on behalf of the business)

Applications are submitted to HM Revenue & Customs (HMRC), either directly through HMRC’s online portal or via an authorised tax agent. Registration should be completed before making taxable supplies in the U.K., as penalties and interest may apply for late registration. Once approved, HMRC will issue a U.K. VAT registration number. Processing times typically range from 2 to 6 weeks, though delays are possible for non-resident applications.

• Structure: GB + 9 digits (e.g., GB123456789)
  • Some businesses may have an additional 3-digit branch identifier on the end (e.g., GB123456789000) 
  • The “GB” prefix is used for VAT verification purposes

After registering for VAT in the U.K., the business must comply with ongoing VAT obligations, including:

• Filing periodic VAT returns (typically quarterly, unless an alternative scheme applies)
• Charging and collecting VAT on taxable supplies at the appropriate U.K. VAT rates
• Issuing VAT-compliant invoices where required
• Maintaining VAT records in line with U.K. record-keeping rules, including digital record-keeping where applicable
• Applying the correct treatment for imports, exports, and cross-border supplies
• Paying VAT due and submitting returns by the statutory deadlines 

Failure to comply with U.K. VAT requirements may result in penalties, interest charges, and enforcement action by HMRC.