£90,000 registration threshold
For a UK-established business, compulsory registration is normally tested using taxable turnover over the previous 12 months on a rolling basis. The test must be run at the end of each month, not only at a year end.
- Standard, reduced and zero-rated turnover
- Rolling 12 months
- Notification timing
- Effective registration date
The next 30 days test
A separate test applies where taxable turnover is expected to exceed the registration threshold in the next 30 days alone. A large contract or one-off taxable transaction can therefore create an earlier obligation.
- Forward-looking evidence
- Signed contracts
- Single large transactions
- Effective date
£88,000 deregistration threshold
A registered business may be able to apply for deregistration when expected taxable turnover for the next 12 months does not exceed the current deregistration threshold, subject to the detailed cessation, asset and compulsory-deregistration rules.
- Expected future turnover
- Cessation of taxable activity
- Assets on hand
- Final return
Overseas businesses need a separate test
The domestic registration threshold does not generally apply to a non-established taxable person making taxable supplies in the UK. Place-of-supply and reverse-charge rules need to be tested before deciding whether there is a UK taxable supply.
- No UK establishment
- First taxable UK supply
- Goods and services
- Reverse charge
Tax guidance changes. These official sources were checked on 31 August 2026.
GOV.UK VAT thresholdsVAT Notice 700/1