Do I charge VAT on digital services sold to UK customers?

Two pieces of non-conflicting evidence, such as billing address, IP address or card issuing country, are needed to establish the customer is UK-based and charge VAT accordingly. Getting this evidence wrong across many small transactions is the main compliance risk for digital sellers.

There is no threshold protecting small overseas digital sellers from UK VAT on consumer sales; a single UK customer purchasing a digital download can trigger the requirement to register and charge VAT.

A UK limited company selling digital services registers for UK VAT in the normal way and includes these sales on its standard return; there is no separate UK equivalent of the EU's One Stop Shop scheme for domestic UK sales.

Where the same company also sells into the EU, a separate EU VAT registration or One Stop Shop scheme is usually needed for those sales, since UK VAT registration does not cover EU customers after Brexit.

Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.

Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.