UK Tax registration
As of January 1st, 2021, the United Kingdom (UK) has implemented fundamental changes to the value-added tax (VAT) accounting and reporting requirements for online sellers, businesses with a direct-to-consumer channel, and online marketplaces.
If your business is involved in the following transactions, you are obligated to get VAT registered within the UK:
- UK business with sales over £85,000: there is a VAT registration threshold of £85,000 for taxable supplies. A taxable supply is a sale where the goods were shipped from the UK (including if you are a drop-shipper using UK suppliers) or if the goods were shipped to a UK customer from anywhere in the world. If you pass this threshold in the last 12 months, then you need to select a registration date which is the first of the following month. Alternatively, if you expect to sell more than the threshold in the next 30 days, then you must register for VAT straight away (e.g., online sellers selling goods over their own webshop or via the marketplace to customers in the UK)
- UK business selling goods valued at £135 or less to UK customers and shipping them from outside the UK: if you are selling products to UK customers with consignments valued at £135 or less, you as a seller must charge and account for VAT at the point of sale. This means that you need to register for a VAT even if you have not passed the threshold of £85,000 of taxable supplies. The date of registration is the earliest date that you shipped the goods to a UK customer from outside the UK (e.g., UK online sellers selling goods over their own webshop (Shopify, Magento, WooCommerce, etc.) and ship the products from outside the UK to private individuals in the UK)
- Non-UK business holding goods in warehouses in the UK: if you are using a warehouse in the UK to store your goods, then you need to register. There is no threshold for a non-UK business, and registration is applicable from the first supply. The date of registration is the earliest date that you stored goods in the UK (e.g., Amazon sellers engaged in Amazon’s FBA program in the UK)
- Non-UK business selling goods valued at £135 or less to UK customers and shipping them from outside the UK: if you are selling products to UK customers with consignments valued at £135 or less, you as a seller must charge and account for VAT at the point of sale. This means that you need to register for a VAT in the UK even if you are not storing the goods in the UK warehouse and you ship your goods from outside the UK. There is no threshold for a non-UK business selling goods valued at £135 or less to UK customers and shipping it from outside the UK, and registration is applicable from the first supply. The date of registration is the earliest date that you shipped the goods to a UK customer (e.g., online sellers selling goods over their own webshop (Shopify, Magento, WooCommerce…) and ship the products from outside the UK to private individuals in the UK)
Online marketplaces (OMP): if you are an online marketplace (OMP) facilitating supplies of goods to UK customers, regardless of where they are established, you are liable for UK VAT on the following supplies:
- Sale of imported goods valued at less than £135 by UK or non-UK businesses.
- Sale of goods (any value) by non-UK business if the goods are located in the UK at the time of sale.
Regardless of one or multiple written scenarios from above, eVAT’s network of Premium Service Providers stands ready to serve your needs.
Discover the benefits of selecting eVAT’s network of Premium Service Providers for your UK VAT registrations:
- Informed Decision-Making: Expedite the decision-making process while maintaining a sense of confidence. Our Premium Service Providers deliver the requisite knowledge and guidance to navigate the UK VAT registration procedure with assurance.
- Enhanced Transparency: Elevate the level of transparency in your registration process. Eliminate ambiguity and confusion with our system, which provides clear insight, enabling you to remain fully informed and engaged.
- Language Barriers Resolved: Overcome any language barriers that may have previously impeded your registration efforts. We bridge linguistic divides, ensuring seamless and efficient communication.
Currently eVAT’s Premium Service Provides cover the following countries with more to follow:
- Czech Republic
- United Kingdom
- Netherlands COMING SOON
- Sweden COMING SOON
- Belgium COMING SOON
- Austria COMING SOON
The commitment of eVAT's network of Premium Service Providers is to simplify your journey through the complexities of tax registration, supplying you with the tools and support necessary for success.
Frequently asked questions
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