How VAT Works for Talent in the United Kingdom

Last updated: June 17, 2026

If your tax residence is the United Kingdom, value-added tax (VAT) may apply to the services Lifted provides to you. This article explains when VAT applies, the current rate, and how VAT IDs and location updates affect charges.

When VAT applies

  • VAT applies if your tax residence is set to the United Kingdom and you have not provided a valid UK VAT ID.

If you move to another country, update your tax information in your account. We’ll automatically adjust the taxes we collect based on your updated residence.

If you update your tax residence, legal name, or other tax details, you may need to revalidate your VAT ID.

Which services VAT applies to

VAT applies to the fees Lifted currently charges for services:

  • Service fees

If we add new paid features in the future and local tax laws require VAT on those services, the applicable tax will appear on your invoice.

VAT rate in the United Kingdom

The standard VAT rate in the United Kingdom is 20%.

You can see the estimated VAT amount on your invoices and in your transaction history.

Providing your UK VAT ID

You’re not required to provide a VAT ID to use Lifted.

However, if you enter a valid UK VAT ID in your tax information, we won’t collect VAT on applicable services. Your VAT ID will appear on your invoices.

If VAT was already collected before you added a valid VAT ID, we’re unable to refund it. Once collected, VAT is remitted directly to HM Revenue & Customs (HMRC). You may be able to claim a credit through your tax authority.

How to add or update your UK VAT ID

You can add or update your VAT ID at any time:

  1. Go to Settings and select Tax information.

  2. Scroll to the Value-added tax section and click Edit.

  3. Enter your VAT details.

  4. Select Save.

VAT ID format in the United Kingdom

A UK VAT ID is issued when you register for VAT with HM Revenue & Customs (HMRC). It is not the same as your personal tax identification number.

A UK VAT ID:

  • Contains 9 or 11 alphanumeric characters

  • May start with GB or XI

Examples: GB123456789, XI123456789, or 123456789

For registration guidance, contact HMRC or a qualified tax advisor.

Exemptions from VAT in the United Kingdom

Location-based VAT treatment is automatically assessed based on your tax information. Providing a valid VAT ID prevents us from collecting VAT on applicable services.

If VAT was collected and you believe you qualify for relief or credit, contact your tax advisor or HMRC for guidance.

Who VAT applies to

UK VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in the United Kingdom and have not provided a valid VAT ID.

VAT and temporary residence in the United Kingdom

VAT applies as long as your tax residence is set to the United Kingdom, even if you are only living there temporarily. If you move, update your tax information and we’ll adjust accordingly.

Refunds for VAT paid before entering a valid VAT ID

If VAT was collected before you added a valid VAT ID, we can’t refund these taxes. VAT collected is remitted directly to HMRC. You may be able to claim a credit through your tax authority.

Disclaimer

This article is for general informational purposes only and is not tax advice. Tax laws may change and may not be reflected here immediately. For advice specific to your situation, contact your local tax authority or a qualified tax professional.