Registering for VAT - Value Added Tax

Value Added Tax is a tax businesses charge on goods and some services that are imported into the UK from places outside of the European Community, and also on goods coming into the UK from another EC member state.

A detailed application form must be completed and submitted - it takes around 4 weeks for the Revenue to issue a VAT number.

Value Added Tax

A UK company is not automatically a UK resident company.

The rules are here:

• Direct Tax Residence: the company is a UK resident company for tax purposes, unless it indicates the place where it should be taxed according to foreign legislation to the the tax authorities.
• Treaty Residency: the company is resident for tax treaties in the country where most of its activity takes place (intended so that people do not invent completely artificial structures).
• Indirect Tax Residency: if the company trades in the EU, it will normally need a VAT number. It needs to register in the country where it has the most activity.

Can my UK company get a UK VAT number?

• If the company has activity and offices in the UK, it has to get a VAT number if it has a certain amount of UK turnover. It also has the right to have a VAT number if the turnover limit is not reached.
• If the company is primarily based in another EU country or is ran from outside the EU, we can get a VAT number.

How do I start?

VAT, the European sales tax, has to be collected and paid by a company. Companies have to register in the country where they are trading as a first preference, or otherwise in the country of incorporation. If the company has been incorporated in the UK, but is not initially going to trade here, it is difficult to get a VAT number. However, we can do this for you. The tax agency, HMRC, need evidence of trade and evidence that there is an intention and a capacity to do business in the near future.

Items that can be persuasive in getting a VAT number:

• Suppliers in the UK and customers in the UK
• Appointment of a UK based Tax Representative
• Appointment of UK based officials, such as a Company Secretary or a Company Director

Much of this initial work is done through the company presenting information to the tax authorities, and the tax authorities replying with requests for further information. These often take place in the form of a visit to the company premises in the UK. In many cases, an expert represents the company at these meetings, but it is useful if the client can personally represent the company.

Please complete our VAT application form online