Company Formations and Value Added Tax

Value Added Tax is a tax businesses charge when they supply their goods and services in the United Kingdom.

 

It is also charged on goods, and some services, that are imported from places outside the European Community and on goods coming into the UK from another EC member state.

 

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

 

Clients from overseas please read our guide to obtaining a UK VAT Registration number.

 

A UK company is not automatically a UK resident company.

 

The rules are here:

 

• Direct Tax Residence: so that it is taxed somewhere, it is a UK resident company for tax purposes, unless it indicates to the the tax authorities, where it should be taxed, according to foreign legislation.
• Treaty Residency: so that people do not invent completely artificial structures: the company is resident for tax treaties in the company where most physical activity is.
• Indirect Tax Residency: if the company trades in the EU, they will normally need a VAT number. They need to register in the company where they have the most activity.

 

Can my UK company get a UK VAT number?

 

• If the company has activity and offices in the UK, the company has to get a VAT number if it has a certain amount of UK turnover, and 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 assist in getting you a VAT number.