Definition
The VAT registration threshold is the level of VAT-taxable turnover at which a UK business must register for VAT with HMRC. It is £90,000. A business must register if its taxable turnover for the last 12 months goes over £90,000, measured on a rolling basis rather than by tax year, or if it expects turnover to go over £90,000 in the next 30 days alone.
What counts towards it
Standard-rated, reduced-rated and zero-rated sales all count. VAT-exempt sales do not. Non-UK businesses supplying goods or services in the UK must register whatever their turnover.
Registration deadlines
- Rolling 12-month test: 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 you went over.
- 30-day test: register by the end of that 30-day period. Registration takes effect from the date you realised.
If turnover for the 12 months to 31 May 2026 goes over £90,000, the business must register by 30 June 2026 and charge VAT from 1 July 2026. Registering late means paying VAT on sales made since the date you should have registered.
The deregistration threshold is £88,000, and businesses under £90,000 can register voluntarily. See how the rolling 12-month VAT test works for more examples.
Related questions
- How do I register for VAT? Online with HMRC; the guide on how to register for VAT walks through the application.
- Can I register for VAT below the threshold? Yes. You can then reclaim VAT on costs but must charge VAT to customers; see voluntary VAT registration.
Related terms
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VAT return
A VAT return is the report a VAT-registered business sends to HMRC, usually every three months, showing how much VAT it charged on sales (output VAT)…
Read definition -
Flat Rate Scheme
The VAT Flat Rate Scheme is an HMRC scheme that lets a small VAT-registered business pay HMRC a fixed percentage of its VAT-inclusive turnover…
Read definition -
Input and output VAT
Output VAT (output tax) is the VAT a VAT-registered business charges on its sales. Input VAT (input tax) is the VAT it pays on goods and services bought for the business.
Read definition
