UK VAT Registration in London: How to Get a UK VAT Number

UK VAT registration is required once a business’s taxable turnover passes £90,000 over a rolling 12-month period, or if turnover is expected to exceed £90,000 in the next 30 days. Overseas businesses making taxable UK supplies often must register regardless of turnover, since the normal threshold doesn’t apply to a non-established taxable person. This guide covers who must register, what HMRC requires, and how the process works for London-based and overseas businesses alike.

This guide is written for company owners, sole traders, e-commerce sellers, overseas brands, marketplace merchants, and firms using a London warehouse or fulfillment provider.

London doesn’t have a separate VAT system; the same HMRC rules apply whether your business is near Canary Wharf, Oxford Street, Old Street, Stratford, Park Royal, Heathrow, or Wembley. Your location shapes your supply chain, not your legal VAT obligations. HMRC looks at the legal entity, taxable supplies, turnover, establishment, and registration start date.

How Does VAT Registration Work in the UK?

VAT registration places a business on the HMRC VAT register. Once registered, the business receives a nine-digit VAT registration number and must account for VAT from its registration start date. HMRC calls this the effective date of registration. This date isn’t always the day HMRC issues the number. A late application doesn’t move the liability forward; HMRC can backdate the requirement and apply a penalty.

The process typically follows five stages:

1. Check whether registration is mandatory or voluntary
2. Work out the correct registration start date
3. Gather business, identity, banking, and turnover records
4. Submit the application to HMRC
5. Set up invoicing, digital records, returns, and payment controls after approval

Do I Need to Register for VAT in the UK?

Review registration if any of the following apply:

• Your rolling 12-month taxable turnover has passed £90,000
• You’ve signed a contract that will push the next 30 days above £90,000
• You’re based outside the UK and plan to make taxable UK supplies
• You’ll hold and sell stock from a UK warehouse
• You sell through an online marketplace and make direct sales
• You want to register voluntarily to reclaim VAT
• You’ve acquired a business whose combined turnover may cross the threshold

Taxable turnover isn’t the same as profit; it’s the total value of standard-rated, reduced-rated, and zero-rated supplies. Exempt and out-of-scope supplies are usually excluded.

A business can also register voluntarily below £90,000, which may suit firms with VAT-bearing costs or VAT-registered customers. This adds compliance work, so weigh the tradeoffs before applying.

Who Needs a UK VAT Number?

Limited companies, sole traders, partnerships, overseas companies, online sellers, importers, wholesalers, and consultants may all need a UK VAT number, depending on turnover and activity.

The threshold test uses a rolling 12-month period, not the company or tax year; turnover must be checked monthly. If turnover crosses £90,000 at month-end, the application is normally due within 30 days, with a registration start date usually on the first day of the second month following.

The forward test is different: if you know taxable turnover will exceed £90,000 in the next 30 days alone, the registration start date is the date that expectation arose, not the date of payment.

Example: A commercial cleaning firm near Canary Wharf stays under the threshold for months, then wins a facilities contract worth over £90,000 in taxable turnover within 30 days. It should register from the date the contract was signed, not when invoices are paid.

Do Non-UK Businesses Have a VAT Registration Threshold?

No. A non-established taxable person doesn’t receive the standard £90,000 threshold. If it makes taxable UK supplies of any amount, registration may be required.

This matters for overseas brands entering London via e-commerce, wholesale, retail, or warehousing. Getting a UK VAT number doesn’t make a company “UK-registered”; HMRC looks at where the business is actually run and where decisions are made.

Overseas applicants must use their genuine principal place of business address (not a mail-forwarding address) and may need to appoint a UK tax representative (jointly and severally liable for VAT debts) or a VAT agent (not normally liable), depending on HMRC’s requirements.

Does Using a London 3PL or Warehouse Require VAT Registration?

Not automatically. What matters is: who owns the stock, who imports it, where goods sit at the point of sale, who sells them, and whether the sale counts as a taxable UK supply.

Still, UK stock is a major flag for overseas sellers. HMRC defines an overseas seller as a business without a UK establishment that sells goods stored in the UK to UK customers, and the position can shift again if a marketplace is treated as the supplier for a transaction.

Before stock arrives at a UK warehouse, confirm:

1. Which legal entity owns the goods
2. Which entity sells the goods to the customer
3. Where the goods are located at the point of sale
4. Who is named as the importer on the customs declaration
5. Whether sales go through a marketplace, your own site, or both
6. Whether the same stock serves business and consumer orders
7. Who keeps import records and postponed VAT statements

VAT Number vs EORI vs UTR vs Company Number

These identifiers are frequently confused. Here’s how they differ:

A VAT number does not replace an EORI, and having a company number is not proof of VAT registration. Businesses that import goods typically need both a VAT number and an EORI.

What Documents Are Needed for UK VAT Registration?

Requirements vary by legal form, but a well-prepared file typically includes:

1. Certificate of incorporation or trade register extract
2. Registered office and principal place of business
3. Director or owner identity documents
4. Business bank details
5. Expected UK sales and taxable turnover
6. Customer contracts, invoices, or marketplace records
7. Supplier invoices and product details
8. UK warehouse or fulfillment agreement
9. Stock ownership and delivery plan
10. Import route, customs agent, and importer details
11. Website or marketplace evidence
12. A short account of how the business will trade in the UK

For overseas brands using a London warehouse, make sure the warehouse contract matches the legal entity named on the application; mismatches between seller, importer, bank account, and warehouse customer commonly trigger extra HMRC questions.

How Do I Register for VAT in the UK?

Most businesses apply through HMRC’s online service:

1. Confirm the reason for registration: mandatory, voluntary, forward-looking, or overseas.
2. Gather your records: identity, company, bank, turnover, and trading details.
3. Sign in to the HMRC service: create login details if needed.
4. Enter legal entity details: company name, sole trader or partnership details, and tax references.
5. Enter turnover and trading details: describing what’s sold, where stock is held, and which channels are used.
6. Explain the supply chain: for e-commerce brands, state who owns and imports goods and who sells to the end customer.
7. Select an accounting scheme, if applicable; don’t pick one just because it sounds simpler.
8. Review and submit, saving your submission reference.
9. Answer any HMRC follow-up questions with the exact records requested.
10. Set up your VAT account once approved.

Paper form VAT1 applies only in specific cases (some overseas partnerships, divisional registrations, and exception requests). Paper applications take longer, and HMRC advises requesting the current form directly rather than downloading one from an unofficial source.

Can You Charge VAT While Waiting for Your VAT Number?

You cannot show VAT as a separate line on an invoice until HMRC issues the number,  but you can build the expected VAT into your total price from the registration start date, then reissue a proper VAT invoice once the number arrives.

Example: A London consultancy agrees to a £12,000 project after its registration start date but before the number arrives. It can quote a VAT-inclusive total, then issue a compliant VAT invoice retrospectively once registered.

Is the Flat Rate Scheme Right for Your Business?

The Flat Rate Scheme applies a fixed percentage to VAT-inclusive turnover, and businesses generally can’t reclaim VAT on purchases (aside from certain capital assets). It’s available if the expected VAT-taxable turnover is £150,000 or less, excluding VAT.

It may not suit importers or stock-heavy e-commerce sellers with high VAT-bearing purchases, since the scheme can restrict input VAT recovery. A service firm with low purchase VAT will see a very different outcome from a homeware importer holding stock in a UK warehouse, run the numbers for your specific model before choosing.

UK VAT Registration for E-commerce and Marketplace Sellers

Don’t assume a marketplace settles every VAT duty on your behalf. Treatment depends on where goods are located, who the customer is, your business establishment, and whether the marketplace is legally treated as the supplier for a given sale.

Overseas sellers using UK marketplaces should give a valid VAT number to each platform they sell through, keep the registered business name consistent everywhere, and separate marketplace sales records from direct website sales. Marketplace VAT treatment for one order doesn’t automatically apply to every channel.

Common VAT Registration Mistakes

• Using the wrong threshold: it’s £90,000, not the outdated £85,000 figure.
• Waiting for the company year-end: the test is monthly and rolling.
• Treating profit as turnover: the test uses taxable supplies, not net profit.
• Leaving out zero-rated sales: they still count toward the threshold.
• Assuming overseas businesses get the standard threshold, they usually don’t.
• Confusing VAT and EORI numbers: one doesn’t prove the other.
• Showing VAT before the number arrives: build it into pricing instead.
• Choosing the flat-rate scheme without checking the import VAT impact.

London VAT Registration Service

A weak or inconsistent application can cause delays, disputed registration dates, and invoicing problems. Trustlogix helps London-based and overseas businesses register for VAT correctly the first time, including:

• Registration and turnover reviews tailored to your business model
• Document preparation and HMRC application support
• Overseas and non-established business applications
• E-commerce, marketplace, warehouse, and 3PL cases
• VAT number, EORI, and importer-of-record checks
• First VAT return and record-keeping setup

Whether you trade from the City of London, Canary Wharf, Shoreditch, Stratford, Wembley, Park Royal, Hounslow, or from outside the UK entirely, we make sure your legal entity, bank account, sales channels, and import documents tell one consistent story to HMRC.

Frequently Asked Questions

What is UK VAT registration?

It’s the process of placing a business on HMRC’s VAT register. HMRC issues a nine-digit number and a registration start date, after which the business must charge VAT correctly, keep records, and file returns.

How do I get a UK VAT number?

Submit an accurate application through HMRC’s online service (or the paper VAT1 route where required), including business, bank, and turnover details. HMRC may request further evidence before approval.

What is the UK VAT number format?

Nine digits, typically shown with a GB prefix, for example, GB 123 4567 89.

Do I need a UK VAT number as an overseas business?

Possibly, even below £90,000 in turnover, the standard threshold doesn’t apply to a non-established taxable person making taxable UK supplies.

Does a London warehouse automatically create a VAT duty?

No. Ownership, import responsibility, point-of-sale location, and whether supplies are taxable in the UK all matter more than the warehouse address itself.

Can I register voluntarily below the threshold?

Yes. It can suit businesses with VAT-bearing costs or VAT-registered customers, but review pricing and compliance workload first.

Can I charge VAT before my number arrives?

Not as a separate invoice line, but you can price in the expected VAT and issue a proper VAT invoice retrospectively once registered.

Do I need both a VAT number and an EORI?

If you import goods, generally yes, they serve different purposes and aren’t interchangeable.

What happens if I register late?

HMRC can require VAT to be accounted for from the date registration should have happened, and a penalty may apply.