Configure VAT and Collect VAT IDs for the UK

You can configure WHMCS to charge Value-Added Tax (VAT) on purchases and collect VAT IDs from clients on the order form.

WHMCS cannot provide tax advice or substitute for a tax expert. We recommend seeking appropriate advice from your local tax authorities.
For steps to set up VAT for European VAT numbers, see Configure VAT for Europe.

Configure Tax Rules for VAT

To configure WHMCS to collect UK VAT numbers:

1. Enable tax support in WHMCS.

Go to Configuration () > System Settings > Tax Configuration.

Set Tax Support to ON.

2. Enter your VAT ID.

To display your own VAT ID on invoices, enter it for Your Tax ID/VAT Number.

3. Enable customer VAT numbers.

Set Customer Tax IDs/VAT Numbers to ON.

4. Save your changes.

Click Save Changes.

5. Enable VAT mode.

Select the VAT Settings tab and set VAT Mode to ON.

6. Enter a VAT label display name.

For Name, enter the VAT label display name that you want to use.

7. Select a VAT number validation method.

Select a VAT number validation method for VAT Number Validation. You can choose from the following options:

  • Do Not Validate (Disabled) — Do not perform any validation on VAT numbers.
  • Validate Format During Checkout — Only validate whether the entered VAT number is valid for the selected country during checkout.
  • Validate with Relevant Authority — Only validate the VAT number with the relevant VAT authority.
  • Validate at Checkout and with Relevant Authority — Validate the VAT number format during checkout and validate the VAT number with the relevant VAT authority.

8. Choose a UK VAT validation mode.

If you selected Validate with Relevant Authority or Validate at Checkout and with Relevant Authority, choose a validation mode for UK VAT Validation Mode:

  • Remote Verification validates VAT numbers against official UK tax authority records and minimizes reporting requirements for your business. We recommend this validation mode for most WHMCS installations.
  • Accept All VAT Numbers accepts all UK VAT-formatted numbers without performing any external validation.
  • Accept All VAT Numbers and Create a To Do Item accepts all UK VAT-formatted numbers without performing any external validation. When you receive an order that includes a VAT number, the system will create a new to-do item for manual VAT number verification at Utilities > To-Do List.
  • Deny All will deny all UK VAT-formatted numbers as invalid.
We strongly recommend Remote Verification validation mode for most WHMCS installations. Other VAT validation modes may result in additional VAT liability for your business.

9. Select the taxed items and products.

Click Create Rules. Then, choose the items and products to tax using this configuration.

For more information, see Tax Configuration.
taxes

Last modified: 2025 December 16