What is UK VAT registration? UK VAT registration review

1. Overview of UK VAT

VAT sales tax and import tax are two independently paid taxes. You have paid the import tax for the goods when they are imported into the UK overseas warehouse, but you also need to pay the sales VAT generated when the goods are sold.

If your products are shipped from local UK warehouses, they will be subject to UK VAT. You should find a solution as soon as possible to register a VAT number, declare and pay taxes, so that sellers can legally use local UK warehouses for shipping and sales.

2. What is the VAT rate?

There are three VAT rates:

1) 20% standard rate (applicable to most goods and services)

2) A low tax rate of 5% (such as household electricity or gasoline, etc.)

3) 0% tax rate (applicable in very special cases)

3. The Importance of UK VAT Registration

1. In September 2015, the European Commission urged member states to increase VAT collection and pointed out that eBay, Amazon and other platforms should be jointly liable for all unpaid VAT and illegal traders;

2. On November 3, 2015, the European Commission announced that it would legislate to abolish the "duty-free import of low-value goods" in 2016;

3. On December 4, 2015, some eBay buyers received a notice requiring them to upload their VAT numbers;

4. In February 2016, the British government discussed in Parliament the strengthening of VAT collection, targeting "Chinese sellers";

5. On March 10, 2016, Etsy took the lead in announcing that it would begin to collect VAT from European sellers;

6. In March 2016, British Chancellor of the Exchequer George Osborne stated in his 2016 budget report that if sellers evade taxes, the government will hold platforms such as Amazon and eBay accountable.

IV. Documents Required for UK VAT Registration

1. Business license/registration certificate;

2. ID card/passport of the legal person;

3. Cargo Questionnaire;

Provide any two copies of the following documents: 1. Lease contract; 2. Employment certificate; 3. Marriage certificate/divorce certificate.

5. UK VAT application process

1. Sign a service agreement;

2. Submit documents and application form: scanned copy of personal ID card or passport, other address proof materials;

3. Start the application. The application time depends on the submitted materials and the efficiency of the UK tax authorities. It usually takes 1-2 weeks, and the fastest is 5 days;

4. The customer obtains the VAT certificate document and EORI number;

5. End of service.

6. Common questions about UK VAT registration

Q1: I have received an audit letter from the tax bureau. What should I do next?

After receiving the audit letter, answer the questions in the letter. Then the tax bureau will give you a reply in about 15 days. According to the tax bureau's reply, proceed to the next step. In addition to the fine, there may be corresponding penalties.

Q2: What are the C88 and C79 files I received used for? Why did I receive these two files?

C88 document: It is a document sent by the customs to the freight forwarder, which is then handed over to the seller. It is a certificate for the customs clearance of goods and has no specific function. C79 document: It is a document sent by the tax bureau to the tax agent. The tax agent informs the customer that it is a payment report of import VAT, which can be used to deduct sales VAT when declaring.

Q3: Can UK VAT be used in EU countries?

No, the VAT in EU countries is independent.

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