Turnover for VAT Threshold: How to Track the £90k Limit
Short answer: to monitor your turnover for the VAT threshold, add up your sales from every channel at the end of each month, then total the last 12 months. If that rolling total goes over £90,000, you must tell HMRC within 30 days. Use what customers paid (including delivery, less refunds), not your payouts after fees, and start watching closely once you pass about £75,000.
The rules themselves (both tests, deadlines, penalties and exceptions) are in our VAT threshold guide. This guide is the practical part: which figure to pull from Shopify, WooCommerce, Etsy, Amazon, eBay, Vinted, TikTok Shop, Stripe, PayPal and your market stall, how to set up a simple tracking spreadsheet, and how to forecast when you’ll cross.
When do you need to register for VAT? The rules in one table
Section titled “When do you need to register for VAT? The rules in one table”| The rule | Source | |
|---|---|---|
| Current VAT threshold | £90,000 of taxable turnover | VAT Notice 700/1 supplement |
| What period? | Any rolling 12 months, checked at the end of every month | Register for VAT |
| Looking ahead | Register if you expect over £90,000 in the next 30 days alone | Register for VAT |
| Deadline | 30 days from the end of the month you went over | Register for VAT |
| Turnover or profit? | Turnover: sales before costs | VAT threshold guide |
| Deregistration threshold | £88,000 for the next 12 months | VAT Notice 700/11 |
These figures are current as of 28 October 2026. Watch this date: the Autumn Budget 2026 is today. We’ll update this page if it changes the HMRC VAT threshold.
Is the VAT threshold the same for sole traders and the self-employed?
Section titled “Is the VAT threshold the same for sole traders and the self-employed?”Yes. There’s one business VAT threshold of £90,000 whether you’re a sole trader, a partnership or a limited company. There isn’t a separate, lower small business VAT threshold.
The catch for sole traders is that VAT registration belongs to the person, not the shop. If you run an Etsy candle shop and also do freelance photography as a sole trader, both count towards one £90,000 total. A limited company is a separate legal person, so its sales are counted on their own. HMRC has anti-avoidance rules for businesses artificially split to stay under the threshold, so splitting one business between family members doesn’t get round it.
The monthly routine: check your rolling 12-month turnover
Section titled “The monthly routine: check your rolling 12-month turnover”Do this in the first few days of every month. It takes 15 to 30 minutes once it’s set up.
- Pull last month’s sales from every channel. Use the reports listed in the channel table below. Write down gross sales including delivery charges, and refunds, separately for each channel.
- Add cash and card-reader takings from markets, fairs and pop-ups.
- Add any invoices for wholesale, commissions or B2B orders, dated when you made the sale.
- Work out the month’s total: sales plus delivery charged, minus refunds.
- Drop the oldest month and add the newest, so you always have exactly 12 months.
- Compare the rolling total with your warning levels (see early-warning levels).
- Look 30 days ahead. If you’ve signed a big order or contract, check whether the next 30 days alone could go over £90,000.
- Forecast the next three months, especially before Black Friday and Christmas.
If the rolling total is over £90,000 at the end of a month, your 30-day clock has started. Register through gov.uk, or follow our step-by-step how to register for VAT guide.
What turnover counts for the VAT threshold
Section titled “What turnover counts for the VAT threshold”HMRC’s taxable turnover is the value of everything you sell that isn’t exempt or outside the scope of UK VAT. For an online seller, that means:
| Count it | Leave it out |
|---|---|
| The full price customers paid for your items | Marketplace, listing and payment fees (they’re your costs, not a reduction in sales) |
| Delivery and postage you charge customers | VAT or US sales tax a marketplace collected and paid on your behalf |
| Zero-rated sales: children’s clothes, books, most food | Sales of your own personal belongings, such as clearing out your wardrobe |
| Goods you ship abroad (zero-rated exports) | Exempt sales, such as insurance |
| Wholesale and B2B sales, commissions, custom orders | Selling your business’s own equipment, such as an old van |
| Discounts funded by the platform, if you still receive the full price | Digital services sold to EU consumers (outside the scope of UK VAT) |
| Second-hand goods at the full selling price, even under the margin scheme | Money you introduce, loans and grants |
Two rules that surprise resellers:
- Margin scheme sellers count the full selling price, not just the margin. HMRC’s manual VATREG02400 confirms this. A reseller who sells £90,500 of second-hand clothes with a £30,000 margin has crossed the threshold. See the margin scheme guide.
- Refunds reduce turnover, fees don’t. Take off the money you gave back to customers. Don’t take off what the platform kept.
The full what-counts list, including the reverse charge on services you buy from abroad, is in the VAT threshold guide.
Which figures to pull from each sales channel
Section titled “Which figures to pull from each sales channel”The figure you want from every platform is the same: what buyers paid for your items and delivery, minus refunds, for the calendar month. Platform report names change from time to time, so treat these as where to start looking.
| Channel | Where to look | Figure to use | Don’t use |
|---|---|---|---|
| Shopify | Analytics, then the Total sales breakdown report | Net sales (gross sales minus discounts and returns) plus shipping charges | Payouts, or total sales if it includes any tax |
| WooCommerce | Analytics, then Revenue | Net sales plus shipping | Total sales if it includes tax |
| Etsy | Shop Manager, then Finances: your monthly statement or the orders CSV | Item sales plus delivery charged, minus refunds | Deposits to your bank, or sales tax and VAT Etsy collected for overseas orders |
| Amazon | Seller Central, then Payments: the Date Range Report summary for the month | Product sales plus shipping and gift wrap credits, minus refunds and promotional rebates you funded | Disbursements, or tax Amazon collected as a marketplace |
| eBay | Seller Hub, then Payments: the transaction report | Item price plus postage charged, minus refunds | Payouts, or tax eBay collected as a marketplace |
| Vinted | Your sold items and wallet history | The item prices of things you bought to resell | Your own wardrobe sales. The buyer’s fee and Vinted-arranged postage aren’t yours either |
| TikTok Shop | Seller Center, then Finance: statements or the orders export | Price paid for your products plus shipping, including any TikTok-funded discount, minus refunds | Settlement amounts after commission |
| Stripe (payment links, your own site, Instagram) | Dashboard, then Payments: export for the month | Gross amount of successful payments, minus refunds | Payouts. Also don’t add Stripe if it’s already the gateway behind Shopify or WooCommerce |
| PayPal | Activity, then statements or an activity download | Gross amount received for sales, minus refunds | The net amount after fees, transfers between accounts, or personal payments |
| Market stalls and fairs | Your takings book, plus card-reader reports (Square, SumUp) | Cash takings plus gross card sales | Card-reader payouts after fees |
| Wholesale and commissions | Your invoices | Invoice totals, dated when you made the sale | The date the customer paid you |
Double counting and missing channels
Section titled “Double counting and missing channels”Two problems account for most wrong totals:
- Double counting payment gateways. If Shopify takes payments through Shopify Payments, Stripe or PayPal, those payments are already in your Shopify sales. Only count the Stripe or PayPal figure separately for sales that didn’t go through your store, such as payment links sent on Instagram.
- Forgetting a channel. The channel people forget is usually small and informal: Instagram DMs paid by bank transfer, a Facebook Marketplace side line, a market twice a year. They all count.
Since 1 January 2024, platforms have collected seller details under the digital platform reporting rules and report them to HMRC every January, so HMRC may be able to see your Etsy, eBay, Vinted and Amazon totals. Make sure your own numbers are complete. Our Vinted, eBay, Etsy and Amazon guides explain what each platform reports.
Common mistakes when tracking the VAT threshold
Section titled “Common mistakes when tracking the VAT threshold”| Mistake | Why it’s wrong | What to do instead |
|---|---|---|
| Using payouts or bank deposits | Fees, refunds and postage labels are already taken off, so the figure is too low | Use gross sales minus refunds |
| Forgetting a channel | It’s one business with one total | List every channel once, then check it monthly |
| Using your financial year or the tax year | The test is any rolling 12 months, checked monthly | Recalculate the last 12 months every month |
| Ignoring the 30-day forward test | One large order can trigger registration on its own | Check whenever a single large order or contract comes in |
| Waiting until after Christmas | Q4 can add a third of your annual sales in three months | Forecast November and December in September |
| Leaving out zero-rated sales | Children’s clothes, books and food still count | Include them at full value |
| Leaving out delivery charges | What customers pay for postage is part of your sales | Include it |
| Counting by payout date | A sale counts when you make it, not when the money arrives | Use the order date |
| Counting only the margin on resold goods | The full selling price counts | Use the full price |
A simple VAT threshold spreadsheet
Section titled “A simple VAT threshold spreadsheet”You don’t need software to start. One row per month and one column per channel is enough. Here’s a layout for a seller using Shopify, Etsy, Amazon and markets:
| Row | A: Month | B: Shopify | C: Etsy | D: Amazon | E: Markets | F: Refunds | G: Month total | H: Rolling 12 months | I: Headroom to £90k |
|---|---|---|---|---|---|---|---|---|---|
| 2 | Oct 2025 | £3,900 | £1,600 | £900 | £0 | £300 | £6,100 | ||
| 3 | Nov 2025 | £5,600 | £2,500 | £1,300 | £1,200 | £400 | £10,200 | ||
| … | … | … | … | … | … | … | … | ||
| 13 | Sep 2026 | £4,800 | £1,900 | £1,100 | £0 | £250 | £7,550 | £81,400 | £8,600 |
| 14 | Oct 2026 | £5,300 | £2,100 | £1,200 | £400 | £300 | £8,700 | £84,000 | £6,000 |
The formulas, described in words:
- Month total (column G): add the channel columns and take off refunds. In row 2 that’s
=SUM(B2:E2)-F2. - Rolling 12 months (column H): add the current month and the 11 above it. In row 13 that’s
=SUM(G2:G13). Copy it down, and the range moves with each row. - Headroom (column I):
=90000-H13. This is how much more you can sell in the coming month before crossing, if nothing drops out. - Warning flag: a conditional format that turns column H amber over £75,000 and red over £85,000.
Each channel column should hold sales including delivery, before fees. Record refunds in the month you give them.
In the example, the row 14 rolling total is £81,400 + £8,700 − £6,100 (October 2025 dropping out) = £84,000.
Early-warning levels: what to do at £75k, £85k and £90k
Section titled “Early-warning levels: what to do at £75k, £85k and £90k”| Rolling 12-month total | Status | What to do |
|---|---|---|
| Under £60,000 | Comfortable | Check monthly. Make sure every channel is in your spreadsheet |
| £60,000 to £75,000 | Watch | Forecast the next three months. Look at last year’s peak months |
| £75,000 to £85,000 | Prepare | Decide your pricing: absorb VAT, raise prices or split it. Check which products are zero-rated. Compare the Flat Rate Scheme. Get your Government Gateway login and business details ready |
| £85,000 to £90,000 | Act | Check weekly during busy periods. Have everything ready to register the day you cross. Consider registering voluntarily now so you choose your start date |
| Over £90,000 | Register | Tell HMRC within 30 days of the end of that month. Set up VAT in your store from your registration date. See the VAT setup checklist |
How much time £75,000 gives you depends on how fast your rolling total is growing, which is what a forecast measures. If your sales are very seasonal, start earlier: one strong December can take you from £80,000 to over £90,000.
Worked example: a Christmas peak pushes a candle shop over £90,000
Section titled “Worked example: a Christmas peak pushes a candle shop over £90,000”Wren & Wick makes candles in Norwich and sells on Shopify, Etsy and at Christmas markets. All its products are standard-rated. At the end of September 2026 the rolling total is £82,600. Summer was quiet, so the owner feels safe. Here’s what the next three months look like, using last year’s figures and this year’s trend:
| Month end | Sales this month | Same month last year (drops out) | Rolling 12-month total |
|---|---|---|---|
| 30 Sep 2026 | £82,600 | ||
| 31 Oct 2026 | £8,500 | £6,000 | £85,100 |
| 30 Nov 2026 | £13,800 | £9,500 | £89,400 |
| 31 Dec 2026 | £17,200 | £12,000 | £94,600 |
The arithmetic for December: £89,400 + £17,200 − £12,000 = £94,600.
- Crosses: at the end of December 2026
- Deadline to tell HMRC: 30 January 2027
- Registered from: 1 February 2027
November ends just £600 under the threshold. A shop that only checked its total in the summer, or added up the tax year in April, would miss this. Because the business is growing, the exception for a one-off won’t help either: it only works if you expect £88,000 or less over the next 12 months.
The forward test doesn’t apply here, because no single 30 days brings in anything like £90,000. But Wren & Wick’s December alone is 18% of its annual sales.
Forecasting when you’ll cross the VAT threshold
Section titled “Forecasting when you’ll cross the VAT threshold”You can forecast with one sum per month: next month’s rolling total = this month’s rolling total + next month’s expected sales − the same month last year.
Expected sales can be last year’s figure for the same month, adjusted by your growth rate. If you’re 20% up on last year so far, multiply last year’s November by 1.2.
Worked example: a Vinted and eBay reseller
Section titled “Worked example: a Vinted and eBay reseller”Hollie resells pre-loved clothes on Vinted and eBay from Bristol. She buys stock from charity shops and car boot sales, so she’s trading, and her sales count in full. At the end of September 2026 her rolling total is £71,000. She forecasts the next six months:
| Month end | Expected sales | Same month last year | Rolling total |
|---|---|---|---|
| 30 Sep 2026 | £71,000 | ||
| 31 Oct 2026 | £7,200 | £5,100 | £73,100 |
| 30 Nov 2026 | £7,800 | £5,600 | £75,300 |
| 31 Dec 2026 | £8,000 | £6,000 | £77,300 |
| 31 Jan 2027 | £6,500 | £4,800 | £79,000 |
| 28 Feb 2027 | £6,800 | £4,900 | £80,900 |
| 31 Mar 2027 | £7,400 | £5,200 | £83,100 |
Her rolling total is climbing by about £2,000 a month, the gap between this year and last. At that pace she reaches roughly £90,000 around July 2027. That tells her she has about nine months to compare the margin scheme with normal VAT accounting, and to decide whether her prices can absorb VAT. Her Vinted buyers are consumers who can’t reclaim it.
Hollie’s own wardrobe clear-outs don’t count. Selling your personal belongings isn’t a business activity. Only the stock she bought to resell goes into the total. Our Vinted tax guide explains where that line sits.
If you sell abroad: EU and US thresholds
Section titled “If you sell abroad: EU and US thresholds”Your UK figure isn’t the only threshold to watch if you ship overseas.
- Goods you export count towards the UK £90,000. They’re zero-rated, but they’re still taxable turnover.
- The EU has no threshold for UK sellers. Since Brexit, you owe EU VAT from your first sale to an EU consumer, usually through IOSS for parcels worth €150 or less. Marketplaces handle this for many low-value orders. See selling to EU consumers.
- Digital products sold to EU consumers are outside the scope of UK VAT, so they don’t count towards £90,000. They’re taxable in the EU from the first sale, usually through the non-Union OSS.
- US states have their own thresholds. Each US state with a sales tax sets an economic nexus threshold, most commonly $100,000 of sales into that state a year, and some higher. Marketplaces collect the tax on their sales in most states. Check yours with the US nexus calculator and the state sales tax index, and read selling to US customers.
How GoodVat monitors your VAT threshold
Section titled “How GoodVat monitors your VAT threshold”A spreadsheet works while you have two channels and a quiet life. It gets harder with five channels, refunds landing in different months, and a Christmas rush when you have the least time. GoodVat does the monthly routine above for you, every day.
It connects to where you sell
Section titled “It connects to where you sell”| Channel | How GoodVat gets your sales |
|---|---|
| Shopify, WooCommerce, BigCommerce | Direct integration |
| Amazon, Etsy | Direct integration |
| Square (markets and pop-ups) | Direct integration |
| Stripe, PayPal (payment links, your own site) | Direct integration |
| Xero, QuickBooks, Sage, Zoho Books, NetSuite | Accounting integrations |
| eBay | Coming soon. Until then, upload your eBay reports |
| Vinted, TikTok Shop, cash takings, other channels | Upload or import your sales exports. We don’t connect to these platforms directly |
What you get
Section titled “What you get”- One rolling 12-month total across every connected and imported channel, using sales and delivery minus refunds, not payouts.
- Alerts before you cross. You hear from us while you still have time to decide on pricing and prepare, not after the 30-day clock has started.
- Registration when you need it. We register you with HMRC on time.
- VAT from day one. GoodVat calculates the right VAT rate for each product at checkout, including zero-rated children’s clothes and books, and sends compliant VAT invoices.
- Making Tax Digital VAT returns, filed for you every quarter.
Beyond the UK
Section titled “Beyond the UK”The same monitoring covers EU VAT and US state sales tax nexus thresholds. If your US sales are approaching a state’s threshold, or you start selling to EU consumers, GoodVat flags it and can register you and file there too, with local partners filing in other countries.
What GoodVat doesn’t do
Section titled “What GoodVat doesn’t do”GoodVat handles VAT and sales tax. It doesn’t file your Self Assessment or income tax return, make Making Tax Digital for Income Tax submissions, or act as a customs broker. For those, use an accountant or a dedicated service. And while we explain the rules clearly, we don’t give regulated tax advice on your personal situation.
What is the current VAT threshold?
Section titled “What is the current VAT threshold?”The current UK VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period, and the deregistration threshold is £88,000. Both have applied since 1 April 2024. The Autumn Budget is on 28 October 2026, so check gov.uk for any change after that date.
Is the VAT threshold the same for sole traders and the self-employed?
Section titled “Is the VAT threshold the same for sole traders and the self-employed?”Yes. The £90,000 threshold is the same for sole traders, partnerships and limited companies. VAT registration belongs to the person, not the shop, so a sole trader adds up the taxable sales from all of their businesses. A limited company is a separate person, so its sales are counted on their own.
What turnover counts for the VAT threshold?
Section titled “What turnover counts for the VAT threshold?”Count the full amount customers paid for your goods and services, including delivery charges, less refunds. Include zero-rated sales such as children’s clothes and books, and goods you export. Don’t take off marketplace fees, payment fees or the cost of your stock. Leave out exempt sales, sales outside the scope of UK VAT and sales of your own personal belongings.
Should I use my payouts or my sales figures to check the VAT threshold?
Section titled “Should I use my payouts or my sales figures to check the VAT threshold?”Use your sales figures. Payouts from Etsy, Amazon, eBay, Stripe or PayPal have already had fees, refunds and sometimes postage labels taken off, so they understate your turnover. A seller whose payouts total £80,000 can easily have £90,000 or more of sales.
When do I need to register for VAT?
Section titled “When do I need to register for VAT?”You need to register when your taxable turnover for the last 12 months goes over £90,000, or when you expect your sales in the next 30 days alone to go over £90,000. If you cross on the rolling 12-month test, you must tell HMRC within 30 days of the end of the month you went over.
Do marketplace sales count towards the VAT threshold?
Section titled “Do marketplace sales count towards the VAT threshold?”Yes, for UK-based sellers. Your sales on Etsy, Amazon, eBay, Vinted, TikTok Shop and other marketplaces all count towards your £90,000, together with your own website and in-person sales. The marketplace collecting VAT on overseas sellers’ goods doesn’t change this for a UK business.
How often should I check my turnover for the VAT threshold?
Section titled “How often should I check my turnover for the VAT threshold?”Every month. The rolling 12-month test is applied at the end of each month, and you only have 30 days from the end of the month you cross to tell HMRC. Once your rolling total passes about £75,000, check more carefully, and forecast the next three months before any busy season.
Related guides
Section titled “Related guides”- VAT threshold 2026: the full rules, deadlines, exceptions and penalties
- How to register for VAT: what to do once you cross
- UK VAT rates for online sellers: which of your products are 20%, 5% or zero-rated
- Flat Rate Scheme: a simpler way to account for VAT once registered
- VAT margin scheme: VAT on second-hand goods for resellers
- UK VAT setup checklist: setting up your store and first return