How VAT works
VAT thresholds
You need to register for VAT if you go over the registration threshold (or expect to).
There are also thresholds for using some VAT accounting schemes.
Use your taxable turnover to work out if you’re over a threshold. This is the total value of everything you sell or supply that is not exempt.
Registration thresholds
| Circumstance | Threshold | What to do |
|---|---|---|
| Total taxable turnover | More than £90,000 | Register for VAT |
| Bringing goods into Northern Ireland from the EU (‘acquisitions’) | More than £90,000 | Register for VAT |
| Selling goods from Northern Ireland to consumers in the EU (‘distance selling’) | Total sales across the EU over £8,818 | Register for VAT in EU countries |
| VAT registered - taxable turnover | Less than £88,000 | Cancel VAT registration (optional) |
There are other rules on reporting VAT if you sell goods from Northern Ireland to VAT-registered businesses in the EU.
VAT accounting scheme thresholds
| Scheme | Threshold to join scheme | Threshold to leave scheme |
|---|---|---|
| Flat Rate Scheme | £150,000 or less | More than £230,000 |
| Cash Accounting Scheme | £1.35 million or less | More than £1.6 million |
| Annual Accounting Scheme | £1.35 million or less | More than £1.6 million |
There are different thresholds for other schemes like the VAT retail schemes.
Thresholds for previous tax years
Check historical information about VAT thresholds if you think you should have been registered in previous tax years.