VAT Registration Threshold Calculator
When you must register, and what it costs you.
Rates change with budgets and local ballot measures, and the rate that applies depends on the delivery address and product category. Treat these as planning figures, not as a filing.
Until you must register
7 months
£71,000 against £90,000
Absorbing the VAT costs £11,833 a year against £4,200 of reclaimable input VAT — a net £7,633. That is the real cliff edge: turnover just over the threshold can leave you worse off than turnover just under it.
How the VAT Registration Threshold Calculator works
The VAT threshold is a genuine cliff edge for consumer businesses. Cross it and either your prices rise by the VAT rate or your revenue falls by a sixth — there is no third option. That is why some businesses deliberately hold turnover below it, and why B2B businesses often register voluntarily well before they have to.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the UK VAT registration threshold?
£90,000 of taxable turnover on any rolling 12-month period. It is not the tax year and not the calendar year, which is what catches people out — a strong quarter can push the trailing twelve months over without the annual figure looking close.
Should I register voluntarily?
Often yes if your customers are VAT-registered businesses — they reclaim the VAT so your price rise is invisible, and you start reclaiming input VAT on your own costs. Rarely if you sell to consumers, because the full rate lands on your prices or your margin.
What happens the moment I cross it?
You must notify within 30 days and start charging from the first day of the following month. VAT is due on sales from that date whether or not you charged it, so a late registration comes out of your own margin.
Can I stay under deliberately?
Yes, and many small businesses do — it is legal to decline work or close for part of the year. Artificially splitting one business into several to stay under is not; that is disaggregation and it is specifically challenged.