How does VAT registration work for a non-resident business (NETP rules)?

The £90,000 threshold protects small UK-established businesses from early registration; it was never intended to shelter overseas sellers, so NETP status removes it entirely. A single qualifying UK sale can create an immediate registration obligation.

A UK-incorporated company with a genuine UK registered office and UK bank account is usually not an NETP even if the director lives abroad, because the company itself is UK-established. NETP status typically catches overseas companies selling into the UK without a UK entity, which is a different situation from a non-resident-owned UK limited company.

Registration is online, with evidence of the business activity, expected UK sales, and bank details for repayments. HMRC can ask for a UK VAT representative jointly and severally liable for the VAT in some circumstances involving businesses with no UK presence at all.

Getting this classification right matters: registering as a normal UK business when NETP rules actually apply, or vice versa, leads to the wrong threshold being used and can trigger penalties for late registration.

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.