How to track VAT registration across sales channels
Keep a combined taxable turnover tracker for the same business across marketplaces, your website and stalls. Use sales records rather than net payouts, link refunds to original orders, and check both the rolling turnover and forward-looking registration tests. Cambridge China Bridge supports sourcing with its own staff in China.
Set the scope before combining sales
This workflow is for a UK-established business moving from trial stock to repeat sales. List every marketplace account, website, stall and other sales route operated by that business. Ask your accountant to confirm which transactions belong in taxable turnover, including any overseas or Northern Ireland sales, before setting up the calculation.
Marketplace VAT collection does not settle your registration position. If your establishment or stock location is uncertain, start with marketplace collection and registration. Keep the seller’s identity beside each channel so accounts belonging to different businesses are not mixed accidentally.
Build a tracker from transactions
Bring dated sales exports and stall records into a shared ledger. Give each transaction a channel and an order or receipt reference. Record goods, customer delivery charges, discounts, refunds and platform deductions separately. Ask your accountant to agree the date and value used for the VAT turnover calculation, especially for advance payments.
Use the fields below to make the calculation reviewable. Keep unresolved entries visible and assign someone to obtain the missing evidence. Preserve the underlying exports rather than replacing them with dashboard totals.
| Field | What to record |
|---|---|
| Business and channel | Seller identity, marketplace account, website or stall |
| Transaction reference | Order or receipt reference and supporting record |
| Dates | Sale, payment, refund and settlement dates; adviser-approved turnover date |
| Sales components | Goods, customer delivery charges and discounts separately |
| Refund link | Refund amount, original sale reference and evidence |
| Turnover treatment | Amount included, classification and adviser’s explanation |
| Review status | Missing evidence, owner and resolution |
Keep payouts, fees and refunds distinct
Do not use the bank payout as your turnover figure. Fees, advertising deductions and held funds can make it smaller than sales. Keep selling costs and stock purchase costs outside the sales total used for your registration check. Use marketplace payout reconciliation for the separate settlement-to-bank exercise.
Link each customer refund to its original sale and retain the refund evidence. HMRC says a partial retail refund can reduce takings by the amount refunded. Record the refund separately from any fee credit or returned-stock movement. Ask your accountant which period an adjustment belongs in, especially when the refund arrives after a registration trigger; do not assume it removes an earlier obligation.
Check the rolling turnover test
HMRC requires registration when total taxable turnover for the last 12 months goes over £90,000. At each month end, calculate the combined rolling total for the business. Include the trial sales in that history; opening another channel or placing a repeat stock order is no reason to restart your tracker.
Add the latest month and drop the month outside the rolling window. Do not reset the calculation at your accounting year end. Save the reviewed total and unresolved adjustments. If it goes over the threshold, contact your accountant or HMRC promptly to establish the application deadline and effective registration date.
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Check expected sales before scaling up
The forward-looking test applies when you expect taxable supplies in the next 30-day period alone to exceed the registration threshold. Check this when accepting a large order or planning a launch, without waiting for month end. It concerns that period’s supplies alone, rather than adding a forecast month to your historical rolling total.
Keep a dated note of the orders and evidence behind the expectation, with your adviser’s decision and next action. Before approving repeat stock, review selling prices and cash needs with your accountant. Use importing when not VAT registered for the separate import planning questions. Cambridge China Bridge’s staff in China can help organise purchase and shipment evidence.
Frequently asked questions
Do marketplace, website and stall sales count together?
Track the same business’s sales together across those channels. Ask your accountant to confirm which transactions enter taxable turnover, particularly where stock or customers are overseas.
Is the VAT threshold based on sales or net payouts?
Use taxable sales turnover, not the bank payout or profit. Keep marketplace fees, advertising deductions and held funds separate from the turnover calculation.
How do I record refunds in my VAT turnover tracker?
Link the refund to its original sale and keep the evidence. Record fee credits separately. Ask your accountant which period to adjust, especially if the refund follows a registration trigger.
Does the VAT threshold reset at year end?
No. The historical test looks at the last 12 months. Keep a rolling tracker and check the separate test for expected taxable supplies in the next 30-day period alone.