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

When running an online business, it’s easy to focus on sales and skip over the paperwork—until VAT comes into the picture. For online sellers in the UK, understanding when VAT registration is required is essential to staying on the right side of HMRC. Whether you’re just starting out or scaling quickly, knowing the rules (and keeping up with your records) matters. That’s where accounting services in the UK come in—helping small business owners stay organised, compliant, and financially confident.

When Is VAT Registration Required?

You must register for VAT with HMRC if:

• Your VAT-taxable turnover exceeds £90,000 over any rolling 12-month period; or 
• You expect your turnover to exceed £90,000 within the next 30 days 

This includes sales made via your own website or through third-party platforms. It doesn’t matter where your customers are located—if you’re based in the UK and selling taxable goods or services, you’re responsible for keeping track.

If you miss the registration deadline, HMRC can charge penalties and require you to pay VAT from the date you should have registered.

Can You Register Voluntarily?

Yes—if your turnover is below the threshold, you can still choose to register for VAT. Some online sellers register voluntarily to:

• Reclaim VAT on eligible business expenses 
• Appear more established to clients and suppliers 
• Prepare early for future growth beyond the threshold 

Just keep in mind that VAT registration comes with extra admin—regular returns, digital recordkeeping, and compliance obligations.

✅ Counto’s all-inclusive accounting plans for online sellers feature multicurrency support, unlimited transactions, GST submissions, and tax filing—with no hidden fees. Benefit from a dedicated team of experts, including a bookkeeper, Chartered Accountant, and tax specialist. Optimise your e-commerce finances today.

How to Register for VAT in the UK

Most businesses register through the HMRC website. You’ll need:

• Your business details 
• A UK bank account 
• Turnover figures or estimates 

Once registered, HMRC will issue a VAT number. This must appear on your invoices, and you may need to provide it to any online marketplaces you use. You’ll also be required to submit VAT returns—usually every quarter—through Making Tax Digital.

How Professional Accounting Support Helps

VAT compliance isn’t just about meeting deadlines—it’s about understanding how VAT fits into your wider financial picture. This is where working with a professional accountant can make all the difference:

• Ongoing monitoring: Accountants can help track your turnover so you don’t miss the registration threshold. 
• Efficient registration: They’ll guide you through the process and avoid common mistakes. 
• VAT return prep: Accurate submissions reduce the risk of errors or penalties. 
• Claiming what’s yours: Professional help ensures you’re reclaiming the right input VAT. 
• Future planning: Accountants offer insights that go beyond compliance—helping you make smart tax decisions as your business evolves. 

For online sellers in the UK, having reliable support can free up time and reduce stress, letting you focus on growth without worrying about the details.

What Happens If You Don’t Register?

If you fail to register when required, HMRC can:

• Charge late registration penalties 
• Demand backdated VAT payments from the date you should have registered 
• Apply interest on any overdue VAT 

To avoid this, regularly review your sales figures and seek advice early if you’re approaching the threshold.

Summary

If you’re selling online in the UK and your VAT-taxable turnover has exceeded £90,000 in the past 12 months—or is expected to in the next 30 days—you must register for VAT with HMRC. Even if you’re below the threshold, voluntary registration may still benefit your business. Staying compliant means tracking your figures, filing accurate returns, and planning ahead—and for many small businesses, having professional accounting support makes this process smoother, faster, and far less stressful.

Discover how Counto helps online sellers like you save time and money

With an intelligent platform combined with experienced accountants and tax specialists, who are dedicated to helping online businesses achieve greater financial efficiency at an affordable price. Experience a smarter way to outsource your ecommerce accounting with confidence. Speak to us directly on our chatbot,  email [email protected] , or use our contact form.