A UK business must register for VAT if its VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or is expected to in the next 30 days alone. It can also register voluntarily below that. Registration is done online with HMRC; most applications take a few weeks and some take longer.
Key points
- Compulsory threshold: £90,000 taxable turnover in a rolling 12 months (since 1 April 2024).
- You must register within 30 days of the end of the month you went over.
- Voluntary registration lets you reclaim VAT on costs and show a VAT number to customers.
- Standard rate 20%, reduced rate 5%, zero rate 0%.
- Overseas businesses with no UK establishment must register from their first UK taxable supply, with no threshold.
When registration is compulsory
Check your taxable turnover (sales that are not VAT-exempt) at the end of each month:
- Backward look: if the total for the last 12 months is over £90,000, register within 30 days of the end of that month.
- Forward look: if you expect to go over £90,000 in the next 30 days alone, register by the end of those 30 days.
If turnover later drops below £88,000 you can ask to deregister.
Voluntary registration
You can register below the threshold. Businesses do this to:
- reclaim VAT on purchases and imports;
- sell to VAT-registered business customers who expect a VAT number;
- meet marketplace or supplier requirements.
Once registered you must charge VAT on taxable sales and file returns, so check your prices still work for non-business customers.
VAT rates
| Rate | % | Examples |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Domestic energy, children’s car seats |
| Zero | 0% | Most food, children’s clothes, books |
Some supplies are exempt (for example most insurance and financial services); exempt sales do not count towards the threshold.
How long HMRC takes
You apply online through your business tax account. HMRC sends the VAT number by post or online. Many registrations come through in a few weeks, but HMRC may ask for more information, especially for new companies with overseas directors, and that can take longer. Until the number arrives you cannot show VAT on invoices, which is why some buyers choose a company that is already VAT-registered.
What a VAT number lets you do
- issue VAT invoices to customers;
- reclaim VAT on business costs and, if you import, use postponed VAT accounting for import VAT;
- apply for an EORI number linked to your VAT registration;
- meet the VAT requirements of marketplaces and B2B customers.
Overseas businesses
A business that is not established in the UK must register for VAT as soon as it makes any taxable supply in the UK (for example, selling goods already stored in the UK). There is no threshold. Whether a company counts as “established” depends on where it is run and its presence in the UK; if in doubt, ask a UK accountant.
Official sources
This guide is general information, not legal or tax advice. Rules and fees change; check the official sources above or speak to a UK accountant before you act.