VAT in the UK for International Businesses
UK VAT News
UK Digital Services Tax Updates for International Sellers
International sellers providing digital services to UK consumers must register for UK VAT once they exceed the £90,000 threshold, regardless of where they are based.
HMRC Updates MTD Requirements for VAT-Registered Businesses
Making Tax Digital for VAT requires all VAT-registered businesses to keep digital records and submit returns using compatible software.
United Kingdom VAT Reference
United Kingdom VAT rates 2026
| Standard rate | 20% |
| Reduced rates | 5% |
Rates pulled from the European Commission's Taxes in Europe Database (TEDB). Last verified 03 May 2026.
Which goods qualify for reduced VAT in United Kingdom?
| Category | Rate | Legal basis |
|---|---|---|
| Essential food (cold takeaway) | 0% | VATA 1994 Sch. 8 Group 1 (VAT Notice 701/14) |
| Books (print) | 0% | VATA 1994 Sch. 8 Group 3 (VAT Notice 701/10) |
| E-books | 0% | VATA 1994 Sch. 8 Group 3 (zero-rated from 2020-05-01) |
| Newspapers | 0% | VATA 1994 Sch. 8 Group 3 |
| Prescription medicines | 0% | VATA 1994 Sch. 8 Group 12 (VAT Notice 701/57) |
| Passenger transport (public) | 0% | VATA 1994 Sch. 8 Group 8 (VAT Notice 744A) |
| Hotel accommodation | 20% | Standard rate — VATA 1994 §2 (VAT Notice 709/3) |
| Restaurant meals (eat-in) | 20% | Standard rate — VATA 1994 Sch. 8 Group 1 Note 3 |
| Non-alcoholic cold drinks | 0% | VATA 1994 Sch. 8 Group 1 (Note: hot drinks are standard-rated) |
| Cinema admission | 20% | Standard rate — VATA 1994 §2 |
| Domestic fuel & power | 5% | VATA 1994 Sch. 7A Group 1 (VAT Notice 701/19) |
When must I register for VAT in United Kingdom?
VAT filing in United Kingdom
- Default frequency Quarterly by default (Making Tax Digital). Monthly available via Payments on Account for large taxpayers; Annual Accounting Scheme below £1.35M.
- Monthly deadline 1 month and 7 days after the end of the period (large taxpayers, monthly POA)
- Quarterly deadline 1 month and 7 days after the end of the quarter (Making Tax Digital)
- EC Sales List Not applicable post-Brexit (replaced by NI-EU dual-VAT for Northern Ireland goods)
- Annual return Not required
United Kingdom digital reporting roadmap
-
Making Tax Digital (MTD) for VAT in force since 2019-04-01All VAT-registered businesses must keep digital records and submit VAT returns via MTD-compatible software.
-
B2G PEPPOL e-invoicing (NHS, central gov) in force since 2014-04-01NHS and many central-government bodies receive PEPPOL e-invoices.
OSS in United Kingdom
Do I need one?
Reference data compiled by VAT Support — informational only, not tax advice. Always confirm with the HM Revenue & Customs (HMRC) before relying on these details.
Is VAT registration required in the UK?
To register for VAT in the UK, consider: your customers’ location (Great Britain or Northern Ireland), whether you sell goods or services, and where goods are located at point of sale.
🕐 Looking for advice tailored to your situation? Schedule a free 15-minute consultation with one of our specialists today.
My B2C business is based outside the EU
For non-UK businesses, VAT registration depends on where your stock is held and whether your customers are in Great Britain or Northern Ireland.
Get Registered for VAT, Fast
Ready to start selling to United Kingdom customers? Begin your VAT registration today, and we can secure your VAT number in as little as three working days.
Selling goods on a marketplace
Since 2021, UK platforms like Amazon and eBay collect and remit VAT on qualifying B2C sales. Marketplaces handle VAT when:
Important: Storing goods in the UK still triggers a VAT registration requirement there, even if the marketplace collects VAT. Orders above threshold limits require your own VAT registration in the UK or a DAP shipment.
Don’t let VAT get in the way of marketplace growth
Expand your marketplace presence in the UK while staying fully VAT compliant. We simplify compliance so you can focus on selling.
Selling Digital Services and Digital Goods to United Kingdom
In the UK, digital services are those delivered electronically — eBooks, online courses, streaming, and downloadable software. If you sell digital services to UK consumers, you must register for UK VAT before making your first sale, with no threshold.
To sell digital services to United Kingdom customers, you can choose one of two registration routes depending on how your service is delivered.
Expert advice recommended: Determining whether your offering qualifies as “electronically supplied” is complex and has major VAT implications. We recommend consulting an expert if you sell digital services.
What Are the VAT Implications for International Businesses Operating Under Different EU and UK Rates?
Navigating VAT can be challenging for international businesses operating across different jurisdictions. A comprehensive list of eu vat rates is essential for understanding the varying obligations in each member state. This knowledge helps companies remain compliant and optimize their pricing strategies to accommodate diverse tax structures effectively.
My B2C business is based in the EU
Assuming you are not established in the UK, EU-based sellers can trade up to EUR 10,000 per year to other EU markets before VAT registration is required.
Stock in the UK
Holding inventory in the UK creates a VAT obligation. You must either register there or use the One Stop Shop (OSS) scheme in your home country.
Stock elsewhere in EU
Each EU country where you store goods or have customers may trigger a separate VAT requirement. Either register locally or consolidate via OSS.
Stock outside the EU
For goods delivered from outside the EU, choose among: VAT registration in the UK, IOSS registration, or Delivered at Place (DAP). For services, you must register for OSS with your home tax authority when selling to EU consumers.
Feeling Confused? Take the EU VAT Quiz
There are many variables. In under a minute, discover whether you need IOSS, OSS, Non-Union OSS, or a standard VAT registration.
VAT on Sales to UK Businesses
When selling B2B in the UK, VAT rules differ. If your UK customer is VAT-registered, you invoice using the reverse-charge mechanism. Registration may still be required if you hold stock in the UK.
🌎 Based outside the country, selling B2B
If your United Kingdom customer is VAT-registered, you generally invoice with the “reverse charge mechanism,” and they declare VAT locally.
🇪🇺 Based in the country, selling B2B
In many cases, cross-border B2B supplies are zero-rated when both parties are VAT-registered. You still must follow United Kingdom invoicing and reporting requirements.