United Kingdom VAT Guide for Nonresident SaaS and E-commerce
A practical guide for US SaaS and e-commerce companies selling into United Kingdom. Rates, registration thresholds, filing deadlines and e-invoicing status, pulled from the same data that powers our free tools.
GBP 0 for nonresident sellers of B2C digital services. GBP 90,000 worldwide-turnover threshold for UK-established businesses.
Filing frequency
Monthly or Quarterly
Do I need to register for VAT in United Kingdom?
After Brexit (1 January 2021) the UK runs its own VAT regime independent of the EU. Non-UK sellers of digital services to UK consumers register directly with HMRC: there is no threshold for nonresident digital-services sellers, and the VAT MOSS scheme no longer applies.
B2C digital services (SaaS, downloads, streaming): register directly with HMRC. No threshold for nonresident sellers. GBP 90,000 UK-established threshold does not apply to non-UK businesses.
B2C goods under GBP 135 per consignment: seller (or online marketplace) charges UK VAT at the point of sale. No import VAT on these consignments.
B2C goods over GBP 135 per consignment: import VAT applies at the border. The importer of record (often the customer) pays it on entry; sellers can opt to act as importer using a Postponed Import VAT Accounting (PIVA) account.
B2B services to a VAT-registered UK buyer: reverse charge under UK VAT rules. Invoice without VAT and capture the buyer's UK VAT number for your records.
How to register
There is no UK equivalent of the EU OSS Non-Union scheme. Non-UK sellers register directly with HMRC, then file UK VAT returns quarterly under Making Tax Digital (MTD).
Where: via HMRC online services at gov.uk/vat-registration. Approved registrations get a UK VAT number (VRN) by post; ongoing returns are filed through MTD-recognised software linked to HM Revenue and Customs (HMRC).
What you'll need: US tax ID (EIN), proof of US tax residency, expected UK turnover, business bank account details, and a description of the supplies you make to UK customers.
Typical timeline: 10 to 30 working days from a complete application. HMRC issues the VRN by post; activation of MTD filing happens at the same time.
Cost: Registration is free. A UK fiscal representative is not mandatory for non-UK sellers but HMRC may request one for high-risk applications. MTD-recognised software is required for filing.
Filing and deadlines
UK VAT returns are filed quarterly under Making Tax Digital (MTD), through HMRC-recognised software with digital links from your accounting system. There is no OSS overlap: every UK-due filing goes to HMRC.
Local United Kingdom filing frequency: Monthly or Quarterly.
Return due: Last day of month following end of return period (+ 7 days e-filing).
Payment due: Same as return.
E-invoicing status in United Kingdom
Status
None (MTD digital records only)
Format
Any (MTD requires digital record-keeping, not structured invoicing)
Model
None
Scope
Not mandated
Go-live
MTD for VAT 2019-04-01; no e-invoicing mandate
HMRC consultation on UK e-invoicing open 2025; no firm mandate. Making Tax Digital requires digital records and submission but not structured invoices.
Common mistakes US SaaS makes in United Kingdom
Treating the UK as part of the EU OSS scheme. After Brexit it is not. UK VAT requires a separate HMRC registration and a separate quarterly return.
Forgetting the GBP 135 import threshold. For B2C goods sold to UK consumers under GBP 135 per consignment, the seller (or marketplace) is responsible for charging UK VAT at the point of sale.
Filing on paper or via spreadsheet. UK VAT returns must be filed under Making Tax Digital (MTD) using HMRC-recognised software with digital links.
Trusting Stripe Tax or Paddle to handle the registration. They collect tax but you remain the merchant of record. You still have to register with HMRC and file MTD-compliant returns.
Missing the two-piece evidence rule. UK guidance (VAT Notice 741A) tracks the EU rules: you need two non-contradictory pieces of customer location evidence for every B2C digital sale.
Not sure if you've crossed the United Kingdom threshold?
Run a free exposure check across the UK and the 27 EU member states. Upload a CSV or sync Stripe; we'll show every country where you're already over the line.
The standard VAT rate in United Kingdom is 20%. Reduced rates apply at 5%, 0%.
Do US SaaS companies need to register for UK VAT?
Yes. There is no registration threshold for non-UK sellers of B2C digital services to UK consumers. Registration is required from the first sale and is done directly with HMRC, not through any EU scheme.
What is the UK VAT registration threshold for nonresident sellers?
Zero for nonresident sellers of B2C digital services to UK consumers. UK-established businesses register when their UK taxable turnover exceeds GBP 90,000 in any rolling 12-month period.
How often do I file VAT returns for United Kingdom sales?
UK VAT returns are filed quarterly under Making Tax Digital (MTD). The data sources show the local UK filing frequency as: Monthly or Quarterly.
Is e-invoicing mandatory in United Kingdom?
E-invoicing status in United Kingdom: None (MTD digital records only). Format: Any (MTD requires digital record-keeping, not structured invoicing).
Can I use the EU One Stop Shop (OSS) for UK VAT?
No. Since Brexit the UK is outside the EU OSS scheme. UK VAT must be registered, filed and paid directly with HMRC, separately from any EU OSS registration you hold.