Registering for VAT

Registering for VAT

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 in the country of incorporation. If the company has been incorporated in Britain, but is not initially going to trade in Britain, 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. Normally, these days there is a visit to any premises of the company in the UK. In many cases, an expert represents the company at these meetings, but it is useful that the client can represent the company personally.

Tax Representatives

UK Data Ltd have attracted a large amount of business as Tax Representatives - the people in a jurisdiction responsible for keeping company records and making these available for the tax authorities. Once we undertake this work, we have to keep documents for the statutory period, which is up to six years. Having a Tax Representative is usually a persuasive factor in allowing the company to get a VAT number.

Notification of Commencement of Activity

When a company is incorporated, HMRC send a document asking for notification that activity has begun in a company. We can send this document to HMRC.

Certified and legalised copies of the Company Statutes

For users coming from Civil Law jurisdictions, the company statutes are not notorised and the signatures thereon are not verified by anyone. This means that the only copy of the statutes considered legitimate, is held in Companies' House. There is no copy held with a notary, and no copy held with any body such as a Chamber of Commerce.

In most countries, a copy of the statutes is needed to open a bank account and to buy property. Companies' House can give a certified copy which we legalise with the British Government. Should further legalisations or translations be needed, we can do these at an extra charge. This may be necessary if the country where trading or purchasing takes place is not a signatory to the Hague Convention, or there are rules about admitting documents in a language other than the official one.

Certificate of Good Standing

To show foreign authorities that a company exists and is complying with regulations to date, and to show specific details about a company: Companies' House will produce a "certificate of good standing" on a given date for the company. These certificates are needed, particularly to demonstrate to foreign authorities, notaries or banks, who is a director, and who can bind the company in a public contract.

We usually get this certificate legalised, and can ask for specific legalisations, where these are to be used in countries that are not signatories to the Hague Convention.

Company Secretaries

While the client is usually director, another person or corporate body needs to be Secretary. We are willing to be Secretaries and recommend the service, as often somebody with specific authority needs to speak to tax or government authorities during the life of the company. If we are appointed as Secretaries, we can do this, without asking for another written document giving us authority to do so.