VAT Services

UK VAT service FZCO Accountants

Our VAT service will support your business in any VAT number relate issues throughout the European Union law. We will keep your VAT documents at safe place up to five years. FZCO Accountants is an international specialising in VAT filings service provider. 

Our basic services involve to obtain a tax compliance in EU member states. We can verify invoices, claiming VAT on mileage and transactions, submitting returns, intrastat declarations, submitting VAT refund applications. We can fiscal represent at foreign tax offices. 

How much is the UK VAT threshold?

The VAT threshold is the amount of money that your business can earn before you need to register for VAT. Businesses only have to pay VAT once their annual turnover exceeds the VAT threshold.

When you have VAT registration number, your business must:

  • Charge VAT on all goods and services sold to customers
  • Pay VAT on stock and merchandise that you buy for your business
  • Open a VAT account and keep a record of VAT
  • Submit VAT returns to HMRC

You must register for Value Added Tax if your taxable turnover exceeds £85,000. Taxable turnover is defined as all turnover generated by sales that are not VAT exempt. Even turnover on which the VAT rate is zero is classed as taxable turnover. Standard rate VAT in the UK is charged at 20%, and the reduced rate is 5%.

If a business has turnover of above the threshold then they must contact HMRC and register for VAT.

What happens once I meet the VAT threshold?

If your taxable turnover crosses the current VAT threshold. You have 30 days to inform HMRC and register for VAT.

Once your VAT companies has completed its VAT registration, your business will be responsible for:

  • Charging VAT on the goods and services you sell to customers
  • Paying VAT on the goods or services you buy for your business
  • Submitting VAT Returns to HMRC
  • Keeping VAT records and a VAT account

Who cannot register their business for VAT?

Starting a business entity cannot register for Copy VAT certificate. It does not meet the definition of a business state to HMRC (please see the gov.uk website for more information).  A business is also prohibit from registering. If the business tends to sell goods or services that are exempt from VAT registration number (i.e. insurance, education).

What is distance selling?

Distance selling occurs when a certificate of VAT registration business in one EU country supplies and delivers goods to a customer in another EU country. Who isn’t register for VAT. You are distance selling into the UK if:

  • You’re outside the UK but in another EU country
  • You sell goods to customers in the UK who aren’t VAT registered
  • You deliver the goods or arrange for their delivery

Customers who aren’t VAT registered include:

  • Private individuals
  • Some small businesses
  • Businesses that can’t register for VAT because their activities are exempt
  • Public bodies
  • Charities

Distance selling only involves goods, not services. When a business registered for VAT in one EU country sells and delivers goods to someone in another EU country who isn’t, and doesn’t have to be, registered for VAT.

Registering online

Your business can register with HMRC online. To register online – including partnerships and a group of companies registering under one VAT number.

By doing this you will register for VAT and create a VAT online account or a Government Gateway account. You need this to submit your VAT Returns to HM Revenue and Customs (HMRC).

Using an agent

You can appoint an accountant or agent to submit your VAT Returns and deal with HMRC on your behalf. When you receive your VAT number from HMRC, you can sign up for a VAT online account (select option ‘VAT submit returns’). To appoint a tax representative to handle your UK VAT affairs, please complete form VAT1TR.

Registering using a paper form

If you prefer, you can register using a paper form, complete the VAT01 form so that your business can successfully apply for its VAT registration number. There are two different HMRC offices handling different types of VAT registration based upon your company’s history and your personal history. To make sure you receive your VAT number as quickly as possible, you will submit the form to the relevant VAT registration office address.

You must use different paper forms depending on the type of business you are and the type of business activity you undertake. The following circumstances require different forms:

  • If you are an EU business ‘distance selling’ to the UK, you should use form VAT1A.
  • If your business makes acquisitions of goods to bring into the UK from other EU states, and if you have passed the acquisition threshold, you must also register for VAT. In this instance, you would need to use the VAT1B form.
  • If you make relevant supplies in the UK (no threshold) you must complete the form VAT1C. This form is designed for completion on-screen, after which you can print it out and send it to HMRC.

After submitting a form

If you submit a paper form, namely the VAT1A, VAT1B or VAT1C. You will receive a VAT number from HRMC in the post. you should receive VAT registration certificate (VAT4). Once you’ve registered for VAT, the system will create a VAT online account for you, sometimes known as a Government Gateway account. This is where your VAT certificate will be sent – it takes up to 30 days for you to receive it. The VAT certificate confirms your VAT number and tells you when you will need to submit your first VAT return and payment.

If you are in a business of purchasing, selling or letting of land or property

The vast majority of commercial property transactions will not be subject to VAT; this includes the exchange of interests in, rights over or licences to occupy commercial properties. 

The following supplies concerning commercial property transactions would be exempt from VAT:

  • All leases, assignments, surrenders, reverse surrenders or licences to occupy any interest in land or buildings.
  • Sales of freehold commercial property or civil engineering works more than three years old or sales, leases or licences of all residential or charitable property.

However, there are certain exceptions. VAT can be applied to commercial property transactions where the property involved is  new build, or where there  has been an election to charge VAT; this is usually the case if renovations or refurbishments have taken place within the property, and there is a need to neutralise the VAT costs. 

If your business activities relate to the buying, selling or letting of land or property, HMRC will need further information about this involvement and you should complete and submit a VAT5L, ‘VAT registration – land and property’ form with your VAT1 Application for registration.

If you wish to opt to tax land or property you will need to complete either a VAT1614A, ‘Notification of an option to tax land and buildings’ or a VAT1614H, ‘Application for permission to opt to tax land or buildings.

For more information, go to www.gov.uk and search for ‘VAT5L’ or ‘VAT Notice 742A Opting to tax land and buildings.

Organisation face a complex taxes legislation matters, on a daily basis. Indeed, VAT rules consist of different layers. European Directives and regulations, local VAT law, national and European case law, administrative guidelines and notices, parliamentary questions, local practices, etc. We can assist your business by VAT compliance check. We also will prepare and submitting VAT return on time. If you would like more information on how this works, get in touch with the FZCO Accountants VAT team today.