VAT in the UK for International Businesses

Get your UK VAT registrations and returns sorted for you with the best customer service in the industry. All handled from our headquarters on England’s south coast.
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I can totally recommend them to anyone who wants to open a VAT account in UK or do business there.
Luca, Italy
The United Kingdom (UK) has several names that are often used interchangeably but refer to different combinations of four countries.

Great Britain (GB) is the name for the union of England, Scotland and Wales. The United Kingdom is Great Britain and Northern Ireland. 

Since Brexit, the UK is no longer in the European Union (EU), but Northern Ireland remains a member of the EU Customs Union and Single Market.

It’s an important distinction because some VAT rules apply to the whole of the UK and some only apply to Northern Ireland.
THE UNITED KINGDOM
Currency Pound Sterling (GBP, £)
Languages English, Scots, Welsh
Largest Marketplace (by page visits) Amazon.co.uk
Most Popular Product Category Fresh Food and Beverages
Tax Authority His Majesty’s Revenue and Customs (HMRC)
VAT Rates Standard – 20%
Reduced – 5%
Zero Rate – 0%

Do I need to register for VAT in the UK?

To work out whether you need to register for VAT in the UK you need to answer a couple of questions:
  • Are your customers individuals or businesses?
  • Are your customers in Great Britain or Northern Ireland?
  • Are you selling goods or services?
  • If you’re selling goods, where are they when your customer purchases them?
  • Are your sales through your own website or an online marketplace?
Like an answer for your specific situation? The easiest thing to do is to talk to someone. Book a free 15-minute call with us and tell us about your business. We’ll help you work out what you need to do.

Selling to UK Consumers

For non-UK businesses, there’s no registration threshold. That means there’s no amount in sales you can make to UK customers before you have to register. You might not need to however, depending on where and what you’re selling.
You’re required to register for VAT if you’re selling goods to people in the UK, regardless of where the goods are in the world when they’re sold. However, depending on the intrinsic value of your shipments, you might not need to.

The UK has a GBP 135 intrinsic value threshold for imports. If the intrinsic value of your shipments is GBP 135 or more, you can decide whether you or your customer is the importer of record. Making your customer the importer of record means they’re responsible for any duties or import VAT due on the shipment and you don’t have to register for anything.
If you decide to be the importer of record, you’ll need to register for VAT (or for IOSS, if your customer is in Northern Ireland). There are a couple of benefits to registering:
Fewer delays at customs means quicker shipping
Potential customers that know there won’t be surprise fees at the border are more likely to convert
Shipments worth GBP 135 or less will be duty-free
You can reclaim the import VAT on your return

VAT Essentials: United Kingdom

Get all the UK VAT information you need to start selling in our downloadable guide.
Download the eBook

Selling services on my online store

In the UK and the EU, anything that’s not a physical object is considered a service. Digital services are a subcategory of services that’s defined by being electronically supplied. So, eBooks, PDFs of sewing patterns, digital albums - they’re all digital services.

Selling digital services to UK customers requires you to register for VAT, and you need to do it before your first sale. However, determining whether a service is “electronically supplied” (and therefore whether you need to register or not) can be tricky. Whether the email with your customer’s download attached is sent by you or automatically makes all the difference.

Because it’s so nuanced, we recommend you get advice from an expert – you don’t want to pay for VAT if you don’t have to.
Tell us about your business

Selling Goods on a Marketplace

In the UK, marketplaces like Amazon and eBay are responsible for charging and reporting VAT on sales. You don’t need to register for anything unless you’re holding stock in the UK, or the intrinsic value of your shipment is more than GBP 135.

If you hold stock in the UK and sell it on a marketplace, you have to register for VAT. Online marketplaces are the ‘deemed supplier’ of the goods to your customer. That means that in law, you’re considered to be making a zero-rated supply to the marketplace, even if you ship the order yourself. The zero-rated supply needs to be reported to HMRC on a VAT return.
Marketplaces don’t cover the VAT on shipments with an intrinsic value over GBP 135. You’ll have to decide who you want to be considered to be importing the order – you or your customer. Making your customer the importer of record will mean they have to pay any VAT or duties due at customs. If you decide to be the importer of record, you’ll have to:
Register for VAT
Charge your customer VAT at checkout
Report the sale on your monthly VAT return
Give HMRC the VAT you’ve collected

Selling to UK Businesses

When your customers are businesses, your VAT obligations in the UK change. You may still need to register for VAT, but in lots of cases, your customer is the one who handles it.

Selling goods on my online store

When you sell goods to businesses in the UK, you can opt to make them the importer of record as long as the intrinsic value of the shipment is GBP 135 or less. They can pay the import VAT up front or account for it on their VAT return (if they’re registered for Postponed VAT Accounting). Just make sure the invoice is correct, and includes your customer’s VAT number.

You’ll need to register for VAT if the intrinsic value of the shipment is greater than GBP 135. If your customer has a VAT number, you don’t have to charge them VAT, but you will need to report the sale on your VAT return as a zero-rated supply.

If your customer doesn’t have a VAT number or can’t give it to you, you’ll need to charge them VAT on their purchase. Then you’ll report that sale on your VAT return and pass the money you collected to HMRC.

Selling services on my online store

When it comes to selling services to UK businesses, an important rule to understand is “the place of supply”. The place of supply is what it sounds like – where the service is supplied, and therefore where VAT is due.

The general rule for place of supply in the UK is that B2B transactions are taxed where the customer is – so in your case, in the UK – but there are special rules for some kinds of services.


If your customer isn’t VAT registered, you’ll need to charge them VAT, report the sale on a VAT return and pass the money to HMRC. There’s no VAT registration threshold for non-UK businesses, so you have to register from your first sale (though ideally before your first sale).

Your VAT-registered customers use the reverse charge mechanism. You don’t charge them VAT. Instead, include the words “Reverse Charge: Customer accounts for VAT” on their invoice, and they’ll report the sale on their VAT return.

Selling goods on a marketplace

Marketplaces aren’t considered the deemed supplier when it comes to B2B sales, so the responsibility for the VAT falls on you.

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Find out more

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Find out more

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How do I register for VAT in the UK?

To get VAT registered in the UK you don’t need to form a company in the UK, but you’ll need to gather some documents.

HMRC requires several pieces of evidence that you will be ready to trade within 30 days of receiving your registration. That could be details showing you are preparing to trade, or documents that show your business already doing so.
Evidence of preparing to trade:
  • Invoices for goods you’ve brought for re-sale
  • Contracts between you and importers
Evidence of preparing to trade:
  • Your Seller IDs
  • Details of your website
  • Import Records
Any contracts you have between your business and fulfilment houses or importers carry the most weight, and without them it’ll be hard to get your registration approved.

Check you’re
charging the right UK VAT rate

Did you know that in the UK, a couple of drops of chocolate can make the difference between a Gingerbread man being zero or standard rated?

Be sure that you’re applying the right VAT rate with a VAT Rate Review. Give our experts your commodity codes and they’ll find the legal precedent for the rate you should apply. You might find that you’re due a refund.

VAT Returns in the UK

The standard filing frequency for VAT returns in the UK is once every four months. The reporting periods don’t always line up with the financial or calendar quarters. You’ll find the dates of your reporting periods on your VAT certificate.

The deadline for filing UK VAT returns is a month and 7 days after the reporting period. So, if your reporting period ends on the 31st of March, you have until the end of the first week of May to file.

Filing a VAT return is an ongoing commitment, but if you register for VAT with us, we’ll take care of it for you. If you’re already registered and don’t want to do the paperwork anymore, why not let us do it instead?

UK VAT Refunds

Once you’re registered for UK VAT, you can get VAT you’ve paid on purchases and imports refunded to you through your VAT return. You have to do so in the same reporting period as the VAT was paid. You can make a claim on a later return, but there are strict limits on doing so.

Not reclaiming VAT in the same period as it was paid is, as a rule, considered an error that must be corrected. If the error has a net value of less than GBP 10,000, it can be handled on your next return, but if it's over, you will have to file a separate form. The general statute of limitations for correcting an error is four years.

Even if you're not based in the UK, you don’t have to be registered to get a VAT refund there. There are specific rules – some countries, transactions, goods and services are not covered by the scheme. Plus, the rules for VAT incurred in Northern Ireland are different.

If you think you’re due a VAT refund anywhere in the UK, tell us about your situation. We’ll let you know if it’s possible and we can help you get your money back.

Customer Reviews

Vincent, Switzerland
A very professional firm
A very professional firm that has taken the pain away from our monthly EU VAT filings. I can only vouch for their high level of service
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A very professional firm that has taken the pain away from our monthly EU VAT filings. I can only vouch for their high level of service and quick response time to our various questions. What a difference from our previous provider (VatGlobal). Do not hesitate to use them.


James Hole, Portugal
Making life simpler
The world of EU VAT registration is fraught with complexity and unseen hurdles. SimplyVAT navigated all of this for us
Read More..

The world of EU VAT registration is fraught with complexity and unseen hurdles. SimplyVAT navigated all of this for us efficiently and effectively, indluding extracting refunds!
Communication was excellent!


David, GB
"Simply VAT helped us do business"
Simply VAT helped us negotiate the EU VAT regulations and thus enabled us to transact business.Farha, our account manager, has been very good-
Read More..

Simply VAT helped us negotiate the EU VAT regulations and thus enabled us to transact business.
Farha, our account manager, has been very good - quick to respond with the answers and the advice we needed.


SimplyVAT customer
“SimplyVAT expertly guided us through VAT complexities for importing to the UK from Ireland.”
We have worked with Simply VAT for around 4 years and couldn't speak more highly of them. They have guided us through Brexit and its implications
Read More..

We have worked with Simply VAT for around 4 years and couldn't speak more highly of them. They have guided us through Brexit and its implications of importing to the UK from Ireland.


Michael
“Their tailored advice streamlined our VAT processes significantly.”
SimplyVAT provided exceptional service from day one. Their team took the time to understand our business needs and offered tailored advice
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SimplyVAT provided exceptional service from day one. Their team took the time to understand our business needs and offered tailored advice that streamlined our VAT processes. Communication was always prompt, and their support made a complex task feel straightforward.


Emma
“SimplyVAT’s expertise helped us expand confidently into new markets.”
As a small business looking to expand internationally, we were overwhelmed by VAT regulations. SimplyVAT’s team guided us through every step
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As a small business looking to expand internationally, we were overwhelmed by VAT regulations. SimplyVAT’s team guided us through every step with confidence and professionalism. Their expertise gave us the assurance to enter new markets without worrying about compliance issues.


Christoffer
“SimplyVAT quickly understood our needs for seamless e-commerce VAT solutions.”
Amazing experience! This is a game changer for those in the E-commerce space etc. They quickly understand your needs and finds the best approach.
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Amazing experience! This is a game changer for those in the E-commerce space etc. They quickly understand your needs and finds the best approach. Would highly recommend


Paul
“SimplyVAT made European VAT manageable for an Australian resident.”
These guys have saved me a bucket load of work, trying to figure out the European VAT system (while resident in Australia) was a nightmare
Read More..

These guys have saved me a bucket load of work, trying to figure out the European VAT system (while resident in Australia) was a nightmare…. in fact, impossible ! The team at SimplyVAT took over the whole thing, AND they don't charge through the nose !!!


Luca
“Michaela’s patience ensured precise VAT account setup in the UK.”
I had a very good experience with SimplyVAT, all the replies I received were precise, thorough and complete. Michaela (my person of reference)
Read More..

I had a very good experience with SimplyVAT, all the replies I received were precise, thorough and complete. Michaela (my person of reference) was always very kind and patient in providing feedbacks and doing further evaluations when asked…I can totally recommend them to anyone who wants to open a VAT account in UK or do business there.


Ulla’s Client ( SimplyVAT customer)
“Ulla Ritchie made our UK VAT process smooth for two years.”
SimplyVAT has continued to upgrade the features, functionality and processes. My primary contact Ulla Ritchie has been extremely helpful from the initial setup
Read More..

SimplyVAT has continued to upgrade the features, functionality and processes. My primary contact Ulla Ritchie has been extremely helpful from the initial setup of our returns to all ongoing needs and questions throughout the past two years. Ulla and the SimplyVAT team have made my UK VAT process smooth and straightforward.


Paul
“SimplyVAT made European VAT manageable for an Australian resident.”
These guys have saved me a bucket load of work, trying to figure out the European VAT system (while resident in Australia) was a nightmare….
Read More..

These guys have saved me a bucket load of work, trying to figure out the European VAT system (while resident in Australia) was a nightmare…. in fact, impossible ! The team at SimplyVAT took over the whole thing, AND they don't charge through the nose !!!


Luca
“Michaela’s patience ensured precise VAT account setup.”
I had a very good experience with SimplyVAT, all the replies I received were precise, thorough and complete. Michaela (my person of reference) was always very kind
Read More..

I had a very good experience with SimplyVAT, all the replies I received were precise, thorough and complete. Michaela (my person of reference) was always very kind and patient in providing feedbacks and doing further evaluations when asked…I can totally recommend them to anyone who wants to open a VAT account in UK or do business there.


Arnold
“The GROW team simplified GST compliance for our e-commerce.”
EXCELLENT team - take stressful setting up processes & turn them into manageable processes - we use SIMPLYVAT for UK VAT & also their GROW team for GST Lovely team
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EXCELLENT team - take stressful setting up processes & turn them into manageable processes - we use SIMPLYVAT for UK VAT & also their GROW team for GST Lovely team from all aspects shout to Jordanne, Carolina & all the team supporting us. Nothing in tax world is simple, but these guys certainly get us a lot closer to it than we would alone! If you are in E-Com I wouldn't go anywhere else other than this team!


Chris
“Hannah’s expertise saved us £7k during an HMRC audit.”
They helped me set up and register my Hong Kong Company for VAT (and got my company an EORI) - I'm based in Australia so it's a complicated set up.
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They helped me set up and register my Hong Kong Company for VAT (and got my company an EORI) - I'm based in Australia so it's a complicated set up. The support is first class and extremely proactive (thank you Hannah!) I was just audited by the HMRC and the team helped navigate the waters effortlessly (came out unscathed - phew!) The HMRC claimed I owed them over £7k - Hannah was able to demonstrate the company only owed £119 - hence this review - they deserve it. Quarterly activity and EOFY submissions are reasonably priced.


Farha’s Client ( SimplyVAT customer)
“Farha resolved my HMRC repayment issue with exceptional follow-up.”
I’ve had a great experience with SimplyVAT. The team is knowledgeable, responsive, and incredibly helpful. Farha, in particular, went above and beyond to assist me with a repayment issue from HMRC
Read More..

I’ve had a great experience with SimplyVAT. The team is knowledgeable, responsive, and incredibly helpful. Farha, in particular, went above and beyond to assist me with a repayment issue from HMRC — she followed up promptly, kept me informed throughout the process, and ensured everything was resolved smoothly. It’s rare to find such a high level of customer service these days. I truly felt supported and well taken care of. I can wholeheartedly recommend SimplyVAT to anyone looking for reliable and professional VAT services. Thank you again for your outstanding support!


UK VAT FAQs

VAT registration in Britain takes between 10-14 weeks. Once you’re registered, you’ll be given a GB VAT number (or XI if you’re registering for Northern Ireland).
Both the UK and the EU use Economic Operator Registration and Identification (EORI) numbers to identify importers. An EU EORI number won’t work for importing to the UK and vice versa. You’ll need a separate UK EORI number to import into the UK.
VAT or Value Added Tax is a consumption tax used in the UK. Businesses charge their customers VAT in the price of their product. They then report the sale to HMRC (the UK’s tax authority) and pay them the amount they collected.
The UK has three VAT rates:
  • Standard: 20%
  • Reduced 1: 5%
There is also a 0% rate.
There is no VAT registration threshold for non-UK businesses in the UK. You need to register before your first sale or backdate your registration to your first sale.
If you’re VAT registered getting a VAT refund in the UK is easy – you do it through your VAT return. If you’re not VAT registered, you can still get a refund but not for everything
You can check whether a UK VAT number is valid or matches the name and address of a business with HMRC’s UK VAT number checker.
VAT is applied to some foods in the UK, but not all. Most essentials, like fruit and vegetables are zero-rated, but even under those categories are products that are standard rated. For example, “ornamental” vegetables, grown for their appearance rather than consumption, have VAT applied at the standard rate.
SimplyVAT is an independent tax agent and compliance consultancy. We are not a government agency and do not issue indirect tax or compliance registrations.
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