Creators must register for VAT when VAT-taxable turnover goes over £90,000 in any rolling 12-month period, and must register within 30 days of the end of that month. Once registered you charge VAT on most UK sales, usually file a quarterly return under Making Tax Digital and can reclaim VAT on business costs. We watch the threshold, register you and file your returns.
Reviewed by Yasser Mahmood, ACCA and Zakir Gire, FCCA, ACCA-registered accountants at Viewcount Accounting. Last reviewed: . About us
When do creators need to register for VAT?
You must register when your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, not just the tax year. You then have 30 days from the end of that month to register. You must also register straight away if you expect to go over £90,000 in the next 30 days alone.
Working out what counts is the hard part for creators. Some income, such as services supplied to business customers overseas, can be outside the scope of UK VAT, while UK brand deals and merch sales usually count. We check each income stream so you register when you need to, and not before unless it helps you.
What's included
Rolling 12-month turnover tracked so you are never caught out
Registration or voluntary registration, and deregistration if turnover falls below £88,000
VAT returns filed through compatible software
AdSense from Google Ireland, overseas brands and EU sales, including the One Stop Shop (OSS)
VAT on equipment, software and services reclaimed where you are entitled to
Questions and checks from HMRC handled for you
VAT basics for 2026/27
- Registration threshold: £90,000 of VAT-taxable turnover in any rolling 12 months.
- Deregistration threshold: £88,000.
- Rates: standard 20%, reduced 5%, zero 0%.
- Voluntary registration: allowed below the threshold. It can help if you mainly work with VAT-registered brands and spend heavily on kit, but it is not right for everyone.
How it works
- Turnover review. We look at your last 12 months of income and sort out what counts towards the threshold.
- Registration advice. We tell you whether you need to register now, soon or not at all, and whether voluntary registration would help.
- Set-up. We register you, set up MTD-compatible software and explain what changes on your invoices.
- Returns. We prepare and file your VAT returns and tell you what to pay and when.
How VAT applies to common creator income
VAT depends on what you supply, who your customer is and where they are. These are general principles. The right answer for an income stream can turn on the contract, so we check each one.
| Income | General VAT position |
|---|---|
| UK brand deals and sponsorships | Usually a standard-rated supply to a UK business, so 20% VAT is charged once you are registered. |
| Overseas brands and agencies (business customers) | Often outside the scope of UK VAT, so no UK VAT is charged. You need evidence that the customer is a business. |
| AdSense from Google Ireland | Treated as a supply to a business outside the UK, so generally no UK VAT is charged. See AdSense and VAT. |
| Merchandise sold to UK customers | Usually standard-rated. Some goods, such as books, can be zero-rated. |
| Memberships, subscriptions and paid communities | Depends on whether you or the platform is treated as the seller, which varies by platform. |
| TikTok Shop and marketplace sales | Depends on the marketplace and who the seller is. See our TikTok Shop tax and VAT guide. |
Zero-rated sales still count towards the £90,000 threshold. Whether overseas income counts needs checking income stream by income stream, which is why we do not rely on a single rule. Our VAT registration guide walks through the threshold in more detail.
What changes when you become VAT-registered
- You charge VAT on taxable UK sales and show your VAT number on your invoices.
- You keep digital VAT records and file returns through Making Tax Digital compatible software.
- Returns are normally quarterly. The return and the payment are due one calendar month and seven days after the end of each accounting period.
- You can reclaim VAT on business costs such as equipment, software and editors, where you are entitled to.
- For merchandise, memberships and other consumer sales, you either add VAT to your prices or absorb it from your margin.
Registration is not a one-way street. If your turnover later falls below the deregistration threshold you may be able to deregister, and we advise on the timing.
VAT schemes that can suit creators
The standard method is to charge VAT on your sales and reclaim VAT on your purchases. Two schemes can simplify things for some creators:
- Flat Rate Scheme. You may be able to join if you expect VAT turnover of £150,000 or less, excluding VAT. You pay HMRC a fixed percentage of your gross turnover instead of working out VAT on each purchase. Whether it saves money depends on how much you spend on equipment and software, so we model it before you join. See GOV.UK.
- Cash accounting. You account for VAT when your customers pay you rather than when you invoice, which can help if brands pay late.
What happens if you register late?
If you go over £90,000 and miss the 30-day deadline, you must pay VAT on the sales you have made since the date you should have registered, even if you never charged it to your customers. HMRC can also add a penalty. Your registration date is normally the first day of the second month after you went over. Checking your rolling 12-month turnover every month is the simplest protection, and it is the first thing we set up.
VAT FAQs
Official sources
Last reviewed October 2026. Figures are for the 2026/27 tax year unless stated. Tax rules change, so check GOV.UK or speak to us before you act.