VAT Registration

You will need to register your UK company for VAT if its VAT-taxable turnover is more than £85,000 (VAT registration threshold for 2023/24 tax year) in a 12-month rolling period. This is not a fixed period like the tax year or calendar year – it could be any period, like the start of October to the end of September the following year.

VAT-taxable turnover is the total value of everything you sell which is not exempt from VAT, rather than the total profit your business makes from sales. Therefore, it is important to check your rolling turnover regularly if you’re close to going over the threshold.

Please note, however, that there are different VAT thresholds if you buy and sell from EU countries.

Aside from the threshold, VAT registration is normally compulsory when a UK company:

  • makes distance sales of excise goods into the UK
  • makes relevant supplies of assets in the UK
  • makes relevant acquisitions
  • is a non-established taxable person (NETP)
  • takes over a VAT-registered business as a going concern