Last updated:

Does zero-rated VAT count toward the VAT registration threshold? (UK)

This is one of the most common VAT confusions. In plain English: zero-rated is still usually “taxable” — it’s just taxed at 0%. That means it can still count toward the VAT registration threshold.

Use the checker below to work out what bucket you’re in and what to do next. General information only (not tax advice).

Quick checker

This checker is intentionally conservative. If you’re close to the threshold or unsure if something is zero-rated vs exempt, verify on GOV.UK or with an accountant.

1) What type of sales do you mostly make?

Main category (best match) If you selected zero-rated: are you confident it’s truly zero-rated (not exempt)?

2) Your turnover (simple)

Estimated turnover in the last 12 months (£) Are you close to the VAT registration threshold?

3) Practical goal

What are you trying to decide?

Likely answer

—

£0.00

Your last 12 months (entered)

—

Does it usually count toward threshold?

Next Steps

Key idea

Zero-rated ≠ exempt.
Zero-rated supplies are typically still taxable supplies (VAT at 0%).
Exempt supplies are not taxable supplies (different rules) — and may not count in the same way.

General information only. Not tax advice. If you’re close to the threshold or unsure about classification, confirm on GOV.UK.

Common mistakes

Assuming “0% VAT” means “doesn’t count” — in many cases, it still counts toward taxable turnover.
Mixing up zero-rated and exempt (they are not the same thing).
Not tracking a rolling 12 months and only looking at a calendar year.
Ignoring mixed supplies (some items taxable, some exempt).