When VAT registration is required
VAT registration threshold in the UK
As of the current tax rules, a business must register for VAT if its taxable turnover exceeds the VAT registration threshold in a rolling 12-month period.
The VAT threshold in the UK is currently £90,000. This includes standard-rated, reduced-rated and zero-rated sales.
If your turnover is close to this threshold, it is important to monitor it monthly to avoid late registration penalties.
If you are unsure whether you need to register for VAT in the UK based on your turnover, it is advisable to review your position early.
A UK business normally needs to register for VAT when its taxable turnover exceeds the VAT registration threshold in a rolling 12-month period. Taxable turnover includes standard-rated, reduced-rated and zero-rated supplies.
Important point
Exempt income and outside-the-scope income usually do not count towards the VAT registration threshold. This is why classifying the business activity correctly is very important.
Common examples
- Accountants, consultants, web designers and IT businesses are usually standard-rated.
- Residential rent is usually exempt from VAT.
- Food, health, education and property can be complex depending on the exact supply.
- Zero-rated sales still count as taxable turnover for VAT registration purposes.
Why SIC code alone is not enough
SIC codes can help identify the likely business activity, but VAT treatment depends on the actual supply, customer type, place of supply, exemptions, special schemes and other VAT rules.
Use our VAT SIC Code Checker
We are building a VAT SIC Code Intelligence Tool to help accountants and businesses identify likely VAT treatment, risk level and review points by SIC code.
Common questions about VAT registration in the UK
When do I need to register for VAT in the UK?
You must register for VAT if your taxable turnover exceeds the VAT registration threshold within a rolling 12-month period.
What is the VAT threshold in the UK?
The VAT threshold is currently £90,000. If your business turnover exceeds this, VAT registration is required.
Do I need to register for VAT if I am below the threshold?
You can register voluntarily, which may be beneficial if you incur VAT on costs.
What happens if I register late?
Late registration can result in penalties and interest, so it is important to monitor your turnover carefully.
Not sure if you need to register for VAT?
Get a quick review of your situation and avoid penalties.
Related tools and guides
This page is for general information only and does not constitute tax advice. VAT treatment should be reviewed based on the specific facts.