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UK VAT registration and returns for overseas businesses

A UK company run from abroad is often a “non-established taxable person” and must register for VAT from its first taxable UK sale, not at £90,000. We tell you which you are, register you, and file every quarter under Making Tax Digital.

From £150per month for quarterly returns · registration from £250 one-off

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UK VAT is 20% on most sales. A business established in the UK registers once taxable turnover in any rolling twelve months exceeds £90,000. A business with no UK establishment — typically a UK Ltd whose people and decisions are all abroad — has no threshold and must register before its first taxable supply. Getting this wrong means back-dated VAT out of your own margin plus penalties.

We assess establishment, register you with HMRC (usually two to four weeks), obtain a GB EORI if you import, and set up postponed import VAT accounting so import VAT is declared rather than paid at the border. Returns are prepared from your Xero ledger and filed quarterly through MTD-compatible software; payment is due one month and seven days after the quarter end.

For e-commerce sellers we deal with the £135 consignment rule, marketplace-collected VAT and the reconciliation between Amazon or Shopify reports and your VAT return.

What’s included

Establishment assessment: threshold or first-sale registration
VAT registration with HMRC (VAT1 and supporting evidence)
GB EORI number where you import or export
Postponed import VAT accounting set-up
Quarterly MTD returns prepared and filed
Reconciliation to marketplace and payment-provider reports
HMRC correspondence handled

How it works

What happens, in order

Assess

We confirm whether you are established in the UK, what rate your supplies carry and whether you need an EORI.

Register

Application submitted with the evidence HMRC asks overseas businesses for. Registration typically issues in two to four weeks.

File every quarter

Return prepared from the ledger, reviewed by your accountant, filed through MTD and the payment date added to your calendar.

When you need this

Who this is for

Overseas sellers of goods to UK consumers, SaaS and services companies with UK business customers, and any UK subsidiary that will invoice from day one. If you sell only to UK VAT-registered businesses, the reverse charge may mean no registration is needed yet — we tell you.

Common questions

Does the £90,000 threshold apply to my UK company?

Only if the company is established in the UK — meaning it has a fixed establishment with the people and technical resources to make its supplies here. A UK Ltd managed entirely from abroad usually is not, and must register from its first sale.

How long does UK VAT registration take?

HMRC typically issues a number within two to four weeks for straightforward applications, longer where they ask for more evidence about an overseas business.

Can I reclaim VAT on set-up costs?

Yes, on goods bought up to four years and services up to six months before registration, if still used in the business and properly invoiced.

What is postponed VAT accounting?

A method that lets an importer declare import VAT on its return instead of paying it at the border and reclaiming later. It removes the cash-flow cost of importing into the UK.