VAT in the UK (England) – how to get your business VAT-registered

If you sell to the UK, you need to deal with British VAT and customs duties—and the rules changed significantly with Brexit. Here is an overview: the rates, the crucial £135 threshold, when you need to register for VAT, and how customs are handled. TIMEVAT handles registration and services for Danish companies in the UK, helping you avoid delayed deliveries and unexpected bills.

Does your company need to be VAT registered in the UK?

VAT in the UK – rates and key figures

Conditions	Detail
Standard rate (VAT)	20 %
Reduced rate	5% (including energy, child seats)
Zero-rated	0% (including most food products, children's clothing, books)
Registration threshold (UK businesses)	£90,000 per 12 months.
VAT number format	GB + 9 digits (e.g. GB123456789)
Consignment limit for imports	£135 (intrinsic value)
Reporting period	Monthly or quarterly

The £135 threshold: the most important rule to understand

British import VAT depends on the value of the shipment. UK VAT is charged on sales of goods to British consumers. at the time of sale for all shipments with a goods value of up to £135In practical terms, this means that if you sell goods online to UK consumers for up to £135, it will become mandatory for your webshop to:

• register for VAT in the UK,
• invoice UK VAT at the time of sale, and
• secure imports at the British border and deliver DDP (Delivered Duty Paid).

The previous £15 minimum threshold has been abolished; all goods must undergo customs clearance upon arrival in the UK. The £135 threshold is based solely on the value of the goods (excluding shipping and insurance) and does not apply to excise goods. If the shipment exceeds £135, the VAT treatment depends on the agreed terms of delivery.

Sales to UK consumers (B2C)

The new British rules make a sharp distinction between three factors: whether the value of the goods is below £135, whether the goods are located in the UK or outside the UK at the time of sale, and whether the sale takes place via one's own webshop or an online marketplace (OMP). If the sale takes place while the goods are located... i UK, og går det gennem en onlinemarkedsplads, bliver markedspladsen ansvarlig for at opkræve og afregne UK-moms. Den danske sælger foretager da en nulmoms-leverance til markedspladsen, men er stadig momsregistreringspligtig i UK og kan fradrage importmoms via sin UK-momsangivelse.

B2B sales to the UK

Different principles apply to sales to British businesses compared to sales to consumers, and correct documentation is crucial. We help you determine when to charge UK VAT, when the customer handles the import, and how to ensure you can claim deductions and issue invoices correctly.

Customs after Brexit – rules of origin and EORI

The Free Trade and Cooperation Agreement between the EU and the UK ensures duty-free passage for goods originating in one of the two areas. To use the duty-free access, you must be able to: document the origin of the goodsGoods originating in a third country outside the EU are typically subject to customs duties upon importation into the UK.

To carry out correct third country export, a EORI number, which is applied for through the Danish Business Authority. Danish companies must include their DK EORI/CVR number on invoices to UK customers. If you have significant exports to the UK, there may be substantial savings to be gained through customs warehousing or other economic customs procedures – we would be happy to review this with you.

VAT refund in the UK

If your company has incurred expenses in the UK, you can reclaim the VAT paid. Refunds are available for items such as trade fair expenses, conferences, hotels, meals, business entertainment, diesel, petrol, car rental*, taxis, advertising, and purchases of goods and services.

Car rentals exceeding 10 days are only 50% refundable. Refunds are granted only for the company's own employees.

How TIMEVAT helps you in the UK

We act as your specialist partner for international finance and exports, taking the entire UK setup off your hands. With our own office in Manchester, we speak the language, know the procedures, and have direct access to UK authorities—and with years of experience guiding Danish companies into third-country markets, we know exactly where the pitfalls lie.

Specifically, we help you to:

• VAT registration: We correctly register your company with HMRC and arrange for a UK VAT number and EORI.
• VAT reporting: We handle your ongoing UK VAT filings on time, so you avoid interest and penalties.
• Applications and permits: We handle correspondence with the authorities and the necessary applications.
• VAT Refund: We recover the VAT you have paid on UK expenses.
• Customs and customs clearance: We provide advice on rules of origin, DDP delivery, and customs optimization to ensure your goods cross the border smoothly.

We act as your extended arm to the British authorities and look after your business as if it were our own – allowing you to focus on sales while we handle your UK obligations.

Frequently asked questions about VAT in the UK