Do Instagram and TikTok Creators Need to Register for VAT? Here’s When It Becomes Mandatory in the UK
VAT often catches creators off guard, especially those growing quickly on Instagram and TikTok. Income can jump from a few hundred pounds a month to tens of thousands almost overnight, and many creators don’t realise this can trigger a legal VAT requirement. This guide explains exactly when VAT becomes mandatory, what counts towards the threshold, what doesn’t, and the steps creators can take to stay compliant.
When does a TikTok or Instagram creator need to register for VAT in the UK?
You must register for VAT when your taxable income exceeds £90,000 in any rolling 12-month period. This includes brand deals, UGC, TikTok Shop commissions, affiliate income and digital services.
It does not matter whether your income is seasonal, unpredictable, or based on brand payments. If your total “taxable turnover” reaches £90,000 in any 12-month window, not just your tax year, VAT registration becomes mandatory.
Because creators receive income from multiple sources, they often cross the threshold quickly without realising. We frequently support creators who hit the threshold unexpectedly after a few strong months of TikTok Shop sales or several large brand deals.
Which types of creator income count towards the VAT threshold?
Most UK-based creator income counts towards your VAT threshold because it is treated as a UK supply of services. If you’re being paid for content, you are generating taxable turnover.
This includes payments from agencies, brands, platforms and UK affiliate networks. The only exceptions are certain overseas payments, which are explained below.
What Does Count Towards the VAT Threshold for UK Creators
Most creator income does count towards the £90,000 VAT threshold because it’s treated as a UK-taxable supply. If you’re being paid for creating content, promoting products or providing digital services, HMRC includes this as part of your VAT turnover.
These income types do count:
- Brand deals and sponsored posts
- UGC work for UK-based agencies or brands
- TikTok Shop commissions
- Instagram collaborations and paid partnerships
- Digital product sales (e-books, presets, courses)
- Affiliate income from UK companies
- Paid subscriptions or exclusive content
- Photography, videography and editing services
- Event appearances for UK businesses
Any service supplied to a UK customer is normally included in your VAT turnover. This is why creators need a clear system to track every payment — even small amounts across multiple platforms add up much faster than expected.
What Doesn’t Count Towards the VAT Threshold for UK Creators
Some income sits outside the scope of UK VAT because the customer is based overseas. These income streams generally do not count towards the VAT threshold:
- Creator Rewards paid by non-UK TikTok entities
- Brand partnerships with companies based outside the UK
- Affiliate commissions paid by overseas businesses
Under VAT place-of-supply rules, services supplied to overseas businesses fall outside UK VAT, so they don’t contribute to your £90,000 threshold.
However, these incomes are still taxable for UK income tax or corporation tax, so they must still be declared to HMRC.
How do TikTok Shop sales affect VAT obligations?
TikTok Shop commissions can push creators over the threshold quickly because platform sales often grow unpredictably.
Creators who go viral on TikTok Shop often move large volumes of product in a short period, and commissions are treated as taxable turnover. We’ve seen creators hit the VAT threshold in as little as three months solely due to TikTok Shop performance.
High-volume sales, even if inconsistent, still count towards your rolling 12-month total.
Does gifted or PR product count towards VAT?
If a gifted item is provided in exchange for content, HMRC treats the value as taxable income, which contributes towards your VAT threshold.
This includes:
- Hotel stays
- Product bundles
- Clothing
- Electronics
- Beauty and skincare PR
- Home or tech equipment
Gifted items only avoid VAT calculations when they are genuine gifts with zero obligation to post. If the brand expects content, engagement, or promotion in return, the value forms part of your taxable turnover.
If you also want to understand which creator expenses you can claim, you can read our guide on claiming work-related costs as a UK influencer.
Link: https://capshine.co.uk/2025/01/how-uk-influencers-can-claim-work-related-expenses-to-reduce-taxes/
What happens if a creator hits the threshold unexpectedly?
You must register for VAT within 30 days of crossing the threshold. If you miss the deadline, HMRC may charge penalties and interest.
Here’s what typically happens:
- You exceed £90,000 in any rolling 12-month period
- You have 30 days to register
- VAT applies from the date you passed the threshold
- Any VAT you should have charged must still be paid, even if you didn’t charge the client
- HMRC may add penalties for late registration
For a detailed walkthrough, you can read our full VAT step-by-step guide for UK influencers.
Link: https://capshine.co.uk/2025/02/vat-for-uk-influencers-a-step-by-step-guide-to-registration/
Some creators face large VAT bills because they didn’t track income and didn’t realise they had crossed the threshold. We help creators avoid this by setting up simple, clear monthly tracking systems.
Should creators register for VAT early?
Early registration is useful if you have high costs, work with VAT-registered brands, or want to reclaim VAT on business purchases.
Voluntary VAT registration can benefit:
- Creators with large equipment costs
- Creators who want to appear more established
- Those who work mainly with VAT-registered UK brands
- Creators whose income fluctuates heavily, making threshold monitoring stressful
Every creator’s situation is different, so we help clients assess whether early VAT registration will improve their financial position or create unnecessary admin.
How should creators track their income to avoid VAT issues?
The simplest approach is to track all income monthly across every platform so you can see your rolling 12-month total clearly.
Track:
- Brand payments
- Platform payouts (TikTok, Instagram, YouTube)
- TikTok Shop commissions
- Affiliate commissions
- Digital sales
- Paid subscription income
- Gifted items with deliverables
Because creator income is fragmented across many sources, tracking manually can be overwhelming. We help creators build systems that provide clarity and reduce the risk of VAT penalties.
Frequently asked questions about TikTok creator VAT
Do TikTok creators have to charge VAT on brand deals?
Yes — once registered, VAT applies to almost all content creation services.
Does VAT apply to TikTok Shop commissions?
Yes, commissions count towards taxable turnover.
Do overseas brand deals count towards VAT?
If the brand is outside the UK and is a business customer, the income is normally outside the scope of UK VAT.
Can creators avoid VAT by switching platforms?
No. VAT is based on total taxable income, not platform choice.
Need help understanding VAT as a creator?
If you’d like personalised guidance on VAT, business structure or tax planning, you can press here to book a free 30-minute call, and we’ll walk you through your situation in plain English so you stay compliant and confident.
