Should I register for VAT?

There are instances whereby VAT registration is mandatory, such as when your VAT taxable turnover exceeds the current threshold of £85,000. If you’re not legally required to register for VAT, you’ll then need to weigh out the benefits (enhances image, reclaim VAT) against the downsides (administrative burden, unexpected VAT bills).

There are additional conditions for businesses selling goods in the UK using online marketplaces. You need to register for VAT if the following apply:

• You’re an overseas seller, and the online marketplace provides you with the VAT details of a business customer
• You’re an overseas seller selling goods located in Northern Ireland at the point of sale and sold to customers in Northern Ireland
• You’re an overseas seller with goods stored in the EU, and your total annual sales to customers in Northern Ireland exceeds £70,000

If you’re an EU business selling to UK customers, VAT registration may be mandatory if you’ve determined that the post-Brexit VAT changes apply to your business. We've outlined these changes in a separate guide on VAT for ecommerce businesses.