United Kingdom

VAT registration in United Kingdom

Non-resident companies maybe need VAT registration in the United Kingdom without the form a local company; this is known as non-resident VAT trading. We can provide all of the necessary assistance to complete the VAT registration form efficiently and accurately. We can also advise you with regard to supporting documentation, such as copy invoices & contracts, that you may need to submit to the HMRC with your VAT registration form.

FZCO & CO is specialised in UK VAT registrations for non-UK located businesses, the requirement to register for the VAT is determined mainly by your business trade & not necessarily the country where your business resides. You may be required to register your company for the VAT because you have drawn down stock in the United Kingdom, or trade internationally over the Internet.

We can help you to register for the VAT and can assist with the preparation and submission of your VAT returns. If you are a UK located business & you travel to another European Union member country on business, you may be entitled to recover VAT on some of your expenditure. Each European country has different rules about which expenses are recoverable and the rules can be complex.

We can assist you to assess any VAT refunds and can compile and submit these claims to the relevant tax authority.

Registering for VAT number in the UK required documents that you can start putting together before contacting us:

  • VAT certificate in your home country,
  • Certificate of incorporation or Excerpt of the trade Register with all details about the company´s incorporation in its home country,
  • Articles of Association issued as part of the incorporation process in its home country,
  • Proof of taxable transactions,
  • Power of Attorney

Exemption from registration

A taxable person whose turnover is wholly or primarily zero-rated may request exemp­tion from registration.

Voluntary registration

A business may register for VAT volun­tarily if its taxable turnover is below the VAT registration thresh­old. A business may also register for VAT voluntarily in advance of making taxable supplies. In this case, the business needs to demonstrate to the UK VAT authorities it has the firm intention to make taxable supplies.

VAT return

VAT returns are generally submitted quarterly. VAT return quarters are staggered into three cycles to ease the UK VAT authorities’ administration. The following are the cycles:

  • March, June, September and December
  • February, May, August and November
  • January, April, July and October

Each taxable person is notified at the time of registration of the return cycle it must use. However, the UK VAT authorities will consider a request to use VAT return periods that correspond with a taxable person’s financial year. In addition, a taxable person whose accounting dates are not based on calendar months may request permission to adopt nonstandard tax periods.

Taxable persons that receive regular repayments of VAT may request permission to submit monthly returns to improve cash flow.

VAT payment

VAT returns must generally be submitted by the last day of the month following the end of the return period. Payment is also generally due by this date. However, in most cases, taxable per­sons that submit their VAT returns electronically have an addi­tional seven calendar days after the normal due date in which to file their returns and make payment (businesses that use the annual accounting scheme or are required to make payments on account do not qualify for this seven-day extension).

VAT returns must be completed in pounds sterling but return liabilities may be paid in pounds sterling or euros.

Deregistration

A taxable person that ceases to be eligible for VAT registration must deregister. A taxable person may also request deregistration if its taxable turnover drops below the deregistra­tion threshold (GBP81,000, effective from 1 April 2016) or if its taxable turnover is wholly or primarily zero-rated. However, deregistration is not compulsory in these circum­stances.

Joint and several liability – online marketplaces

Joint and several liability provisions relating to online marketplaces have been introduced. Under these provisions, where an overseas trader who operates through an online marketplace is liable to be regis­tered and account for UK VAT, and they fail to do so, HMRC now has powers in place to hold the online marketplace jointly and severally liable for any UK VAT due.