Skip links

Updated UK VAT guidance: Why you can’t afford to risk non-compliance

UK tax authorities have updated guidance on UK VAT compliance and registering for VAT in the UK. According to HMRC guidelines, you are obliged to register for VAT in the UK if you are:

  • A UK seller with an annual taxable turnover of over £85 000
  • An overseas seller that sells goods through an Online Marketplace (OMP) in cases where the OMP provides you with the VAT details of a businesses customer
  • A foreign company selling goods that are located in Northern Ireland to customers in Northern Ireland
  • An overseas seller with goods located in the EU at the point of sale, with annual sales to customers in Northern Ireland of over £70 000.   

The enormous cost of VAT non-compliance

Businesses operating in the UK cannot afford to be careless about VAT compliance. 

Firstly, there’s the risk of potentially severe penalties for failing to be fully compliant.

In addition, overseas sellers providing goods through an OMP face another  risk. In the event of VAT non-compliance, HMRC warns they could contact the marketplace request that they remove you.

Obviously this could have devastating consequences for your businesses.

HMRC also points out that online marketplaces can remove businesses if they are aware that they must be registered for VAT and have not done so. In addition, you could be removed if you fail to provide a valid VAT registration number.

Registering for VAT if you sell B2C through an OMP

In many cases, an online business selling goods through an Online Marketplace will not need to register for VAT. However, as we have previously discussed, there will still be a number of advantages to registering for VAT even if you sell through an OMP.

As noted above, if you fail to provide your OMP with a valid VAT registration number, they could potentially remove you from their marketplace. 

Effortless registration and compliance

Vatglobal provides world class VAT expertise, supported by technology. We make registration and compliance easy, in the UK or anywhere that you have a VAT obligation.

Contact Vatglobal to ensure complete VAT compliance and ensure business continuity, even in uncertain times.  


Get a quote