Can I Sell on Shopify Without a VAT Number in the UK?

Wondering if you can sell on Shopify without a vat number? The short answer: yes, as long as your taxable turnover stays below the threshold. This quick guide breaks down when you need to register, and when you don’t.

Key Takeaways

• You can sell on Shopify without a VAT number as long as your taxable turnover stays under £90,000.

• However, VAT rules kick in fast if you’re earning from multiple sources or selling digital products to the EU, so track everything from day one.

When You Don’t Need a VAT Number

You don’t need to register for VAT in the UK if:

• Your total taxable turnover is under £90,000 in any 12-month period.

• You’re only selling physical goods to UK customers.

• You’re not selling digital products or services to EU customers.

• You’re just starting out and testing the waters.

• You don’t earn property income through the same business that could count toward taxable turnover.

Keep in mind that most residential property income is VAT-exempt, but it may still count toward your VAT threshold if earned through the same sole trader business or company.

When VAT Registration Becomes Mandatory

You’ll need a Shopify VAT number if your taxable turnover exceeds £90,000 over 12 months. That includes everything you sell, not just through Shopify, but from any business activity under the same entity.

HMRC gives you 30 days to register once you hit the threshold. Miss it, and you could face penalties or interest charges.

RELATED: How Do I Contact HMRC VAT by Phone? Avoid the Wait

You also must register earlier if:

• You’re selling digital products or services to customers in the EU

• You’re importing goods into the UK

• You’re a non-UK business selling into the UK  (in that case, the threshold doesn’t apply at all)

👉 If you’re close to the threshold or unsure whether your income streams count together, it’s worth getting advice early.

That’s exactly what we do at JAFA. If you’re not sure where you stand, or you just want to avoid costly mistakes, BOOK A FREE CALL. We’ll talk you through your setup and tell you exactly what you need to do (and what you don’t).

What We Think

The VAT system isn’t always fair to small online sellers, especially those starting out with platforms like Shopify.

The rules sound simple, but the reality is more confusing than it should be. You’re allowed to sell without a VAT number if you're under the threshold, but it’s easy to lose track, especially if you have multiple income streams like freelancing, property, or even digital products.

We’ve seen clients assume they were fine, only to discover too late that they’d crossed the threshold months ago, and HMRC doesn’t make exceptions for that.

What we wish more people knew? That you don’t need to register right away, but you do need to track every penny from day one. And that selling digital products to the EU, even in small amounts, can quietly pull you into a different VAT world altogether.

How JAFA Can Help

We help Shopify sellers and small businesses make sense of VAT before it becomes a problem.

Whether it's tracking income, knowing when to register, or handling digital sales to the EU, we make sure you're covered and compliant.

If you believe your products qualify as Shopify tax-exempt, we’ll help you configure it correctly and ensure they align with HMRC guidelines.

Not sure what applies to your setup? BOOK A FREE CALL with our expert accountants today. We’ll talk you through it, step by step.