Do resellers need to worry about VAT?
VAT worries a lot of sellers who do not need to think about it at all. It is completely separate from the income tax on your profit, and almost every small reseller is nowhere near having to register. Here is the plain version of when it matters.
General information, not tax advice. Check with HMRC or a qualified accountant before you act on it.
VAT and income tax are two different things
Income tax is on your profit and can apply once you pass the £1,000 trading allowance. VAT is a separate tax on your sales, and it only kicks in at a much, much higher level. Passing the trading allowance has nothing to do with VAT.
The threshold is £90,000 of sales in a year
You only have to register for VAT once your VAT-taxable turnover goes over £90,000 in any rolling 12 months, or you expect to pass it in the next 30 days. That is total sales, not profit. The vast majority of resellers are a long way below this.
What changes if you do register
Once registered, you add VAT to your prices, hand that VAT to HMRC, and can reclaim VAT on things you buy for the business. It means more admin and usually higher prices for buyers, so it is not something to do voluntarily unless it clearly helps you.
Second-hand goods have a special scheme
If you ever do get near the threshold selling used items, there is a VAT margin scheme that charges VAT only on your margin rather than the full price. It is worth knowing it exists, but it is a conversation for an accountant once you are close.
What most resellers should actually do
If your sales are well under £90,000, VAT is not your problem, and you can forget about it. Focus on the trading allowance and income tax instead. Just keep an eye on your annual sales total so you would notice if you were ever heading toward the threshold.
Frequently asked questions
Do I pay VAT on my eBay or Vinted sales?
Not unless your total sales pass £90,000 in a 12-month period. Below that you do not register for or charge VAT. It is completely separate from the income tax on your profit.
Is the VAT threshold the same as the trading allowance?
No. The £1,000 trading allowance is for income tax. The £90,000 threshold is for VAT. They are unrelated, and most sellers only ever need to think about the first one.
Should I register for VAT voluntarily?
Usually no for a small reseller. It adds admin and normally means higher prices. Only consider it if an accountant shows it genuinely benefits you.
See where you actually stand
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This guide is general information, not tax advice, and reflects the UK rules for the current tax year. Always check with a qualified accountant before you file. FlipTally is independent and not affiliated with, endorsed by or connected to eBay, Vinted, Depop or HMRC. Last updated 2026-08-04.