Whether your company must register for VAT depends first on where your business is established, and only then on how much it sells.
The two VAT registration tests
If your business is established in the UK
You must register when your total taxable turnover for the last 12 months goes over £90,000, or when you expect it to go over £90,000 in the next 30 days. If you went over in the last 12 months, you have 30 days from the end of that month to register.
If your business is based outside the UK
HMRC calls this a non-established taxable person. You must register for VAT regardless of turnover if all of these apply:
- you are based outside the UK
- your business is also based outside the UK
- you supply goods or services to the UK, or expect to within the next 30 days
There is an exemption from registering only if all of your taxable goods or services are zero-rated.
Does a UK company or a UK address make you UK-established?
Not on their own. HMRC’s VAT Registration Manual says:
- “A company incorporated in the UK would not alone constitute a UK establishment.”
- “A registered, serviced or virtual office address or mail forwarding service will not create a UK establishment.”
HMRC instead looks at how far the business is actually managed and run in the UK. So a UK limited company that is run from Saudi Arabia, Morocco or Algeria, with a registered office address and mail forwarding in the UK, may be treated as not established in the UK, and need to register for VAT from its first UK sale.
Plan this before you start selling. If you sell to UK customers, including through online marketplaces, work out your VAT position before your first sale rather than after. Registering late can mean accounting for VAT on sales you have already made.
What VAT registration involves
- VAT returns: usually every 3 months.
- Deadlines: the online return and the payment are both due 1 calendar month and 7 days after the end of each VAT period.
- Making Tax Digital: all VAT-registered businesses should be signed up for Making Tax Digital for VAT.
- Invoices: your sales invoices should show your VAT registration number and show the VAT separately.
A quick example
| Situation | VAT registration |
|---|---|
| UK company, managed from the UK, £40,000 taxable turnover in the last 12 months | Not compulsory yet (below £90,000) |
| UK company, managed from the UK, turnover passed £90,000 in March | Register within 30 days of the end of March |
| Business based outside the UK, about to make its first sale to UK customers | Register regardless of turnover, unless all supplies are zero-rated |
How Bristol Co helps
Bristol Co’s UK Tax & VAT Services give your company tax and VAT support once it starts trading, including registration thresholds, return deadlines and staying compliant with HMRC. If your company is run from outside the UK, talk to us before you start selling so you know whether you need to register from your first UK sale.
Sources
This guide explains the general rules and was checked against GOV.UK and HMRC on 27 October 2026. VAT depends on the facts of your business, and this isn’t tax advice for your situation.
