Specialist knowledge is key to reducing VAT risk
If you are an online retailer selling goods to UK or European customers, you are likely to need to register for VAT. Contrary to what is often said the VAT threshold for non-established businesses in now NIL. If you hold stock in a UK warehouse you are likely to have to register for VAT immediately. We offer three e-commerce VAT packages to help our clients deal with their VAT compliance in a few simple steps.
VAT Registration for International Companies
The UK is one of the most popular locations for companies to expand to and offers many benefits.
VAT Registration in the UK – Why Overseas Companies need it?
VAT registration in the UK for foreign companies becomes relevant is a number of circumstances. The most common of these are:
- when goods are acquired and sold in the UK
- Where goods are sold to UK private individuals from outside the UK, this is called distance selling and after the UK turnover threshold is reached a VAT registration is required.
- Making sales of goods or services in the UK over the UK turnover threshold will require a VAT registration.
- If stock is held in the UK and sold to UK customers that could be a reason to have to register for VAT.
- Importing goods to UK from outside the EU will incur VAT and import duties at the point of entry. VAT can be reclaimed if the importer is VAT registered.
What are the costs of registering for VAT in the UK?
The costs of VAT registration in the UK for overseas companies vary between different suppliers but it is important to use an adviser that is very familiar with the VAT legislation to avoid problems later on. VAT registration fees are only paid once and getting good advice at the outset can avoid many problems later. VAT registration fees can also depend on the complexity of the circumstances and the company’s trade and structure. Once the foreign company is VAT registered, a VAT return is normally done quarterly.
How long does it takes to register for VAT in the UK?
The VAT registration processing time in UK is normally quite fast. Most time is taken to gather the information and deal with the formalities of the application. Once the VAT application has been submitted, the tax authorities may have additional questions, or require further information. It usually takes between three and six weeks for a VAT number to be issued to a non-UK company .
What are the VAT registration requirements in UK?
For a VAT registration application, the UK tax authorities require detailed information about the business and how and where it trades. The company will have to supply details of whether it has an establishment in the UK, or whether it is trading from its non-UK head office in Germany, the USA or France for example. The applicant making the VAT application must be a director of the company and will need to supply personal identification information and details of previous and present UK VAT registrations with which they are associated.
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