Do you sell as a Dutch e-commerce entrepreneur to British consumers, or do you store inventory in an Amazon FBA warehouse in the United Kingdom? Then you will almost certainly have to deal with British VAT and the related filing obligation with HMRC. Since Brexit, the UK is no longer an EU country and has its own completely separate VAT regime: EU rules, intra-community transactions and the One Stop Shop (OSS) system do not apply here. You always arrange your British VAT directly with the UK tax authority, separately from your Dutch or EU obligations.
In this blog we explain when you need to file a VAT return in the UK, which returns exist, how often you need to file, what the deadlines are in 2026, and what fines you risk if you are late. This way you know exactly what to expect.
When do you need to file a VAT return in the United Kingdom?
The trigger for a British VAT return is: you store inventory in the United Kingdom. This can be because you store products yourself in your own fulfilment location or an Amazon FBA warehouse, but also because you use Amazon FBA, where Amazon can store your products in British warehouses and ship from there.
Do you sell from the Netherlands to British consumers at a distance? Different rules apply here than for EU countries. Because the UK is no longer an EU member since Brexit, you cannot pay British VAT via the One Stop Shop (OSS) in the Netherlands — the OSS applies exclusively to EU countries. As a non-established taxable person there is moreover no threshold: you must register and pay British VAT to HMRC from your very first taxable sale. Once you hold inventory in the UK, a local British VAT registration and return is always mandatory.
The reason this works so differently from EU countries is entirely due to Brexit. Since 1 January 2021, the United Kingdom is completely outside the EU VAT zone. The UK has its own VAT system, with its own rates, thresholds and filing rules that are independent of the EU. For UK-established businesses, a registration threshold of £90,000 in taxable turnover per year has applied since April 2024, but that threshold does not apply to foreign sellers without a UK establishment.
The standard UK VAT rates are: 20% (standard rate, for most goods and services), 5% (reduced rate, for example for child car seats and domestic energy) and 0% (zero rate, for example for most food and children’s clothing).
Which returns exist in the United Kingdom?
In the UK, everything revolves around the regular VAT Return. You must file this digitally via Making Tax Digital (MTD) for VAT. Since MTD became mandatory for virtually all VAT-registered businesses, you can no longer submit your return manually via a web form: you must use software that can communicate with HMRC’s systems and keep your VAT records digitally.
There is also a separate refund scheme for foreign businesses: the VAT refund scheme for non-established businesses. Do you pay British VAT on business costs while you are not VAT-registered in the UK (and don’t need to be)? Then you can reclaim that VAT under certain conditions. This is the British counterpart of the old EU refund procedures (8th/13th Directive), which no longer apply to the UK since Brexit.
Overview: which return, how often, and which form?
| Return | How often? | Deadline | Form or portal |
|---|---|---|---|
| VAT Return (regular VAT return) | Quarterly (standard), monthly possible | 1 month + 7 days after the end of the VAT period | Making Tax Digital (MTD) for VAT, via compatible software |
| VAT refund scheme (refund for non-established businesses) | Once a year (claim year runs 1 July to 30 June) | No later than 31 December after the claim year ends | Form VAT65A, to be submitted to HMRC |
How often do you need to file?
The standard in the UK is a quarterly return. When you register, HMRC assigns you a VAT accounting period, and you then file four VAT Returns per year. The end dates of your quarters do not have to coincide with calendar quarters; HMRC may place you in a cycle ending on 31 January, 30 April, 31 July and 31 October, for example.
If you want to file more frequently, you can choose monthly filing. This is especially interesting if you structurally receive VAT refunds (for example due to a lot of import VAT), as you will then receive your refund faster. In exceptional cases the Annual Accounting Scheme (one annual return with advance payments) also exists, but for most e-commerce entrepreneurs the quarterly return is the norm.
The deadlines for 2026 at a glance
The deadline for your VAT Return in the UK is clear: you have 1 month and 7 days after the end of your VAT period. This period applies to both filing the return and paying the VAT due. Also make sure your payment reaches HMRC’s account on time; for a bank transfer you need to allow processing time.
For the most common quarterly arrangement (calendar quarters), the deadlines in 2026 are as follows:
- Q4 2025 (Oct–Dec 2025): no later than 7 February 2026
- Q1 2026 (Jan–Mar 2026): no later than 7 May 2026
- Q2 2026 (Apr–Jun 2026): no later than 7 August 2026
- Q3 2026 (Jul–Sep 2026): no later than 7 November 2026
- Q4 2026 (Oct–Dec 2026): no later than 7 February 2027
Please note: if you file monthly, or if HMRC has assigned you a different VAT period, different dates apply. Your exact deadlines can always be found in your HMRC account.
What happens if you are late?
Since 2023, the UK operates a points system for late-filed returns, combined with separate fines and interest for late payment.
Late submission penalty points. For every late-filed VAT Return you receive a penalty point. Once you reach a threshold, a £200 fine follows — and then another £200 for every subsequent late return. The thresholds depend on your filing frequency: monthly filing 5 points, quarterly filing 4 points, annual filing 2 points. Points expire over time if you file everything on time for a period.
Late payment penalties. Since the change in April 2025, the percentages have increased. If you pay within 15 days of the deadline, you receive no fine. After that: from day 15 a first fine of 3% of the outstanding VAT amount; from day 30 another 3% on top; from day 31 a second fine that increases daily at an annual rate of 10% until you have paid the full amount.
Interest. On top of these fines, HMRC charges interest on late-paid VAT: the Bank of England base rate + 4%. Worth noting for 2026: the combination of higher fine percentages and higher interest makes late payment considerably more expensive than a few years ago.
Step-by-step guide: how to file your British VAT return
- Register for VAT with HMRC. Apply for a British VAT Registration Number. As a non-established business you do this from your very first taxable sale, with no threshold.
- Choose MTD-compatible software. Making Tax Digital requires you to keep your VAT records digitally and file your return via approved software.
- Keep your records digitally. Record all your sales, purchases and import VAT digitally and ensure a seamless connection (“digital links”) between your systems.
- Calculate your VAT per period. Determine the VAT due on your sales, reduced by the deductible (import) VAT on your costs.
- File your VAT Return on time and pay. Keep to the deadline of 1 month + 7 days for both filing and payment.
- Retain your records. In the UK you must keep your VAT records for six years in principle.
Do you need a British VAT registration?
Because the UK is no longer an EU country, you cannot arrange your British VAT via the One Stop Shop (OSS). The OSS is exclusively intended for distance sales within the EU — the United Kingdom has been completely outside this since Brexit. You can therefore never pay British VAT via your Dutch OSS return; a local British registration is the only route.
You need a British VAT registration in any case if:
- you store inventory in the UK, for example in an Amazon FBA warehouse (the zero threshold for non-established businesses then applies and you register from your first sale);
- you sell directly to British consumers and are yourself responsible for the VAT;
- you sell via an online marketplace and the deemed supplier rules do not cover all situations.
The latter is important: for certain sales, the marketplace platform (such as Amazon) is designated as deemed supplier and the platform pays the VAT. But this does not mean you never need to register yourself — you often still need a British VAT number, even if the marketplace pays the VAT.
The rules around thresholds, marketplaces and deemed supplier are fairly complex. Are you unsure whether you need to register in the UK, or how the marketplace rules apply to your situation? Our VAT specialist Joke is happy to help you get it right from the start.
