VAT · 8 min read

UK VAT for overseas sellers: when the £90,000 threshold doesn’t apply

UK-established businesses register for VAT at £90,000 of taxable turnover. Non-established businesses often have to register from their first UK sale. How to tell which you are.

Two different rules

UK VAT has one threshold most people have heard of and one exception most people have not. Businesses established in the UK must register once taxable turnover in any rolling 12-month period exceeds £90,000. Businesses that are not established in the UK — HMRC calls them non-established taxable persons, or NETPs — have no threshold at all. They must register as soon as they make, or expect to make, a taxable supply in the UK.

Does a UK company make me “established”?

Not on its own. HMRC looks at where the business has its principal place of business or a fixed establishment — real people, premises and decision-making in the UK. A UK Ltd whose only UK presence is a registered office address, run day to day from Mumbai or Berlin, is usually treated as non-established. This surprises a lot of founders who assumed incorporation settled the question.

Goods sold through marketplaces

If you sell goods to UK consumers through an online marketplace and you are an overseas seller, the marketplace is usually responsible for charging and paying the VAT on those sales. You may still need to register yourself — for example, if you also sell direct from your own website, hold stock in the UK, or sell to VAT-registered UK businesses.

Services

For most business-to-business services, the UK customer accounts for the VAT under the reverse charge and you do not need to register. For business-to-consumer digital services, and for certain land-related or event services, the rules differ and registration is often required from the first sale.

Importing goods

You will need a GB EORI number to import. Once VAT registered, you can use postponed VAT accounting, which means declaring and reclaiming import VAT on the same return instead of paying it at the border and waiting for a refund.

What we do

Before you sell anything, we assess whether you are established or non-established, whether marketplace rules cover your sales, and whether a voluntary registration would help you reclaim UK costs. Then we register you, set up Making Tax Digital software, and file every quarter. See VAT registration and returns.

This guide is general information for overseas businesses considering the UK, correct to the best of our knowledge at the date shown. It is not advice for your specific circumstances — rules and thresholds change. Check with us or HMRC before acting on it.