Do You Need to Register for VAT as an Online Seller in the UK?

VAT for online sellers UK: most small sellers do not need to register, but you should know where the line is. The rule is based on your sales, not your profit, and the limit is £90,000.

The two tests

• Looking back: if your taxable turnover for the last 12 months goes over £90,000, you must register within 30 days of the end of the month you went over. Registration takes effect from the first day of the second month after. GOV.UK’s example: £100,000 reached on 15 July means registering by 30 August, effective 1 September.
• Looking forward: if you expect to go over £90,000 within the next 30 days alone, you must register by the end of that 30-day period.

What counts as taxable turnover

GOV.UK says it is the total value of everything you sell that is not VAT exempt or out of scope. It also includes goods you barter, part-exchange or give away as gifts, and business goods you use for personal reasons.

What this means for a small seller

• Add up your sales every month, from every place you sell, so you can see how close you are to the limit. Our spreadsheet guide shows how.
• If you are getting close, talk to an accountant or HMRC before you pass the limit.
• Selling above or below the limit is separate from income tax. See whether you need to tell HMRC about your sales.

Registering voluntarily

You can register even if you are under £90,000. GOV.UK says you will owe HMRC VAT from the date they register you, so think about it carefully before you choose to.

Special rules apply in some cases, for example for non-UK businesses and in Northern Ireland, and thresholds can change. Checked on 9 November 2026. General information, not tax advice. Ask an accountant about your own situation.