--- title: The VAT registration threshold description: The VAT registration threshold --- [Skip to content](https://help.1stformations.co.uk/accounting-service/the-vat-registration-threshold#main-content) [![image 4](https://help.1stformations.co.uk/hubfs/image%204.svg)](https://www.1stformations.co.uk/) - [Help Centre](https://help.1stformations.co.uk/) Open main navigation Close main navigation - [Help Centre](https://help.1stformations.co.uk/) - [Login](https://www.1stformations.co.uk/login/) [Login](https://www.1stformations.co.uk/login/) How can we help you? - There are no suggestions because the search field is empty. 1. [Accounting Service](https://help.1stformations.co.uk/accounting-service?hsLang=en-gb) 2. [VAT Registration and Submissions](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb) 3. [Do I Need to Register for VAT](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#do-i-need-to-register-for-vat) # The VAT registration threshold ## When you must register for VAT VAT registration is compulsory when your taxable turnover in any rolling 12-month period exceeds £90,000. You must register within 30 days of the end of the month in which you exceeded the threshold. ### What counts as taxable turnover Taxable turnover includes standard-rated sales (20%), reduced-rated sales (5%), and zero-rated sales (0%). It does not include exempt supplies (such as most financial services and residential property rental) or dividends. For most small service businesses, all income is standard-rated and taxable turnover equals total turnover. ### Monitoring your position View your total sales in the profit and loss report for the last 12 months at the end of each month. If this figure exceeds £90,000, you have crossed the threshold. Contact us as soon as your rolling 12-month total approaches £70,000 so we can help you prepare for registration before the deadline. 💡 **Important:** Missing the registration deadline means HMRC backdates the registration and assesses output VAT on all sales from the date you should have registered, whether or not you collected it from customers. The cost comes from your own company funds. ### Not found what you're looking for? 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