UK VAT Registration for E-Commerce Sellers: 2026 Guide

The United Kingdom remains one of the most important markets for European e-commerce businesses. However, since the UK left the EU on 1 January 2021, the rules for selling into the UK have changed substantially. EU VAT rules — including the One Stop Shop (OSS) — do not apply to UK sales. The UK operates its own, separate VAT system administered by HMRC (His Majesty’s Revenue & Customs), and compliance obligations can be significant even for relatively small sellers.

When is UK VAT registration mandatory for non-UK businesses?

The rules differ importantly depending on whether a business is established in the UK or overseas.

For UK-established businesses, the VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period, unchanged since April 2024.

For non-UK businesses — including EU-based e-commerce sellers — the threshold does not apply. Overseas traders are required to register for UK VAT as soon as they begin making taxable supplies in the UK. Even a single qualifying transaction can trigger the obligation.

In practice, the key triggers for mandatory UK VAT registration for an overseas e-commerce business are:

• Storing goods in the UK — for example through Amazon FBA or a third-party warehouse — regardless of sales volumes or transaction values.
• Selling goods directly to UK consumers (B2C) where consignment value is £135 or less — the seller must charge and collect UK VAT at the point of sale and register with HMRC accordingly.
• Selling goods over £135 directly to UK consumers from outside the UK — the seller or importer of record faces import VAT and customs duty obligations.
• Selling goods already located in the UK as an overseas business, regardless of value.

The £135 threshold and marketplace rules

A critical distinction applies depending on how goods are sold. When low-value goods (worth £135 or less) are shipped from overseas and sold via an online marketplace such as Amazon, eBay, or Etsy, the platform itself becomes responsible for collecting and remitting VAT to HMRC. The overseas seller is deemed to have made a zero-rated supply to the platform. As long as all UK sales are made exclusively via online marketplaces, there is no need to register for UK VAT.

However, if a seller also makes direct sales through their own website or stores goods in the UK, VAT registration is required regardless of the marketplace arrangement.

For B2B sales where the UK business buyer provides a valid UK VAT number, the reverse charge applies and the overseas seller does not need to charge VAT on low-value consignments.

How to register for UK VAT

Registration is done online through HMRC’s website. Unlike the original VAT A1 “Application for Registration — Distance Selling” form referenced in older guidance, HMRC now uses a streamlined online VAT registration service. Paper registration remains available but is significantly slower.

To register, businesses will typically need to provide:

• business identity details and company registration documents;
• details of UK business activity and expected turnover;
• bank account information;
• evidence of UK trading activity, which may include contracts with carriers, marketplace agreements, or invoices.

Registration can be completed online or by post. Businesses typically receive their UK VAT registration number and certificate from HMRC within 30 days. Most EU and non-EU businesses are not required to appoint a fiscal representative to register or file VAT in the UK.

Obligations of a UK VAT-registered business

Once registered, a business receives a UK VAT number consisting of 9 digits, which may be preceded by the prefix GB. The main ongoing obligations are:

• Charging the correct UK VAT rate on taxable supplies and including VAT on invoices.
• Filing VAT returns — typically quarterly — and paying any VAT due to HMRC. Returns are due one month and seven days after the end of each accounting period.
• Keeping VAT records — including all invoices and receipts — for at least six years.
• Complying with Making Tax Digital (MTD) requirements, which require digital record-keeping and electronic submission of VAT returns through MTD-compatible software.

UK VAT rates

There are three VAT rates in the UK:

• 20% — the standard rate, applying to most goods and services.
• 5% — reduced rate, covering items such as domestic energy, children’s car seats, and certain medical equipment for the disabled.
• 0% — zero rate, applying to printed books, most food, children’s clothing and footwear, new-build residential construction, and certain other categories.

Some supplies are exempt from UK VAT entirely, including insurance, financial services, postal services, education, and medical care.

Common challenges with UK VAT registration

HMRC frequently requests additional documentation during the registration process, which can be difficult for overseas businesses to provide — particularly contracts with carriers or marketplace agreements. Correspondence is often by post, which lengthens the process. In some cases, applications are cancelled and must be restarted from the beginning.

Working with a specialist accounting firm experienced in UK VAT for e-commerce businesses can significantly reduce delays and the risk of errors.

How amavat® can help

amavat® offers UK VAT registration and settlement services as part of its VAT Compliance offering. We can register your business securely and efficiently, then manage ongoing VAT filings and record-keeping.

More information: https://amavat.eu/vat-compliance-e-commerce/

If you have any questions, please contact our team of experts: Contact us — amavat®