United Kingdom · VAT
UK VAT registration and filingwherever your business is based
UK businesses register for VAT once their sales pass £90,000. Businesses based abroad register from their first UK sale. Either way, GoodVat registers you with HMRC, charges the right rate at checkout and files your quarterly Making Tax Digital returns.
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A real person replies within one business day · or email hello@goodvat.com
- Standard rate
- 20%
- Threshold for UK businesses
- £90,000
- Threshold if you’re based abroad
- £0
UK VAT · HMRC
- Registered
UK VAT registration
GB 123 4567 89
- Calculated
Adult clothing, UK consumer
20% standard rate
- Calculated
Children’s shoes, UK consumer
0% zero rate
- Filed
Return, July to September 2026
Due 7 Nov 2026 through MTD
Next return: October to December 2026, due 7 February 2027.
The rules
What UK VAT asks of online sellers
The rules depend on whether your business is based in the UK or abroad. These are the ones that catch sellers out.
- 01
The £90,000 threshold
UK businesses register once taxable sales pass £90,000 in any rolling 12 months, or are expected to pass it in the next 30 days alone. Every channel counts: your own store, marketplaces and social sales together.
- 02
No threshold if you’re based abroad
Businesses established outside the UK register before their first taxable UK sale: stock sold from a UK warehouse, imported parcels sold straight to consumers, or digital services to UK consumers.
- 03
Parcels of £135 or less
UK VAT on low-value imported parcels is charged at checkout, not at the border. Through your own store, you charge it and pay it on your return. Through a marketplace, the marketplace does.
- 04
Marketplaces collect only for overseas sellers
Amazon, eBay and Etsy charge UK VAT for sellers based abroad on goods already in the UK and on parcels of £135 or less. UK-based sellers charge and pay the VAT on their marketplace sales themselves.
- 05
Making Tax Digital (MTD)
Every VAT-registered business, in the UK or abroad, keeps digital records and files through MTD-compatible software. Returns are usually quarterly, due one month and seven days after the period ends.
- 06
Penalties run on points
Each late return earns a penalty point, and four points on quarterly returns brings a £200 fine for every late return after that. Late payments add interest and penalties from day 16.
Your situation
Which of these sounds like you?
| If you… | You need | What GoodVat does |
|---|---|---|
| You’re a UK business getting close to £90,000 in sales | A UK VAT number within 30 days of the end of the month you pass it | We track the threshold across every channel, register you in time and file each quarter. |
| You ship parcels from abroad to UK consumers through your own store | A UK VAT number, and VAT charged at checkout on parcels of £135 or less | We register you, add UK VAT at checkout and file every quarter. |
| You’re based abroad with stock in a UK warehouse, such as Amazon FBA | A UK VAT number before the stock arrives, plus an EORI number to import it | We register you, separate marketplace sales from your own and file each return. |
| You sell software, apps or downloads to UK consumers | UK VAT from £90,000 for a UK business, or from the first sale if you’re based abroad | We apply 20%, or 0% on e-books, at checkout and file each quarter. |
| You only sell services to UK businesses from abroad | Usually no UK VAT number: your customer accounts for the VAT under the reverse charge | We record your customers’ VAT numbers and apply the reverse charge only where it fits. |
How it works
How GoodVat handles UK VAT
One account covers every step, from the first registration check to the last return. Use the parts you need.
Monitoring
We count your taxable sales across every channel against the £90,000 threshold, or flag the first sale that needs a registration if you’re based abroad.
Registration
Our UK accountants prepare and submit your HMRC application, whether you’re a UK business or one based abroad, answer HMRC’s questions and send you your VAT number.
Tax calculation
The API returns the UK rate for each product, 20%, 5% or 0%, and applies the £135 parcel rule and the marketplace rules at checkout.
E-invoicing
Every UK sale gets a VAT invoice with the details HMRC requires, including the VAT in pounds sterling when you invoice in another currency.
Filing
We prepare each quarterly return from your sales, submit it to HMRC through Making Tax Digital and tell you what to pay and when.
Pricing
UK VAT, free to start
The Free plan covers threshold monitoring, the right tax at checkout, invoicing and ready-to-file returns. Paid plans start at $20 a month as your transactions grow, never a percentage of your sales.
A real person replies within one business day · or email hello@goodvat.com
Rather not deal with it yourself? Our accountants can register you with HMRC, file every return and deregister you when you stop selling there, for $99 a month.Filing prices
Frequently asked questions
When do I need to register for UK VAT?
UK businesses must register once taxable sales pass £90,000 in a rolling 12 months, or are expected to pass it in the next 30 days alone. Businesses based outside the UK have no threshold: they register before their first taxable UK sale, such as selling from UK stock or selling digital services to UK consumers.
Does Amazon pay UK VAT for me?
Only if your business is based outside the UK. Amazon then charges and pays the VAT on sales of goods already in the UK and on imported parcels of £135 or less, though you still need a UK VAT number to import your stock and report those sales. UK-based sellers charge and pay the VAT on their Amazon sales themselves.
Do I have to use Making Tax Digital?
Yes. Every VAT-registered business, in the UK or abroad, keeps digital records and files its returns through MTD-compatible software. GoodVat submits your returns through MTD for you.
Do overseas businesses need a UK fiscal representative?
Usually not. HMRC lets most overseas businesses register and file directly, and our UK accountants act as your agent with HMRC. HMRC can ask some businesses for a security deposit instead.
How long does UK VAT registration take?
It depends on HMRC’s queue, and applications from businesses based abroad usually take longer. We submit yours as soon as we have your documents and handle HMRC’s follow-up questions until your number arrives.
What does UK VAT compliance cost with GoodVat?
GoodVat is free to start: the Free plan covers threshold monitoring, tax calculation, invoicing and ready-to-file returns, and paid plans start at $20 a month as your transactions grow. If you’d like our accountants to register you with HMRC and file for you, filing is $99 a month, covering every return due.
Hand your sales tax and VAT to GoodVat
Tell us where you sell. We’ll map every registration you need, calculate tax at checkout and file your returns in 140+ countries. The software is a flat monthly plan, and done-for-you filing has a published price per country.