What taxes are payable if you are registered for VAT in the UK?

Look at your shipping type.

Shipping + Customs Duty + Import Tax + Sales Tax. There are four in total, among which there is a difference between the standard tax rate and the low tax rate depending on the type of tax to be declared.

Low tax rate = shipping + customs duty + import tax 20% + sales tax.

Standard tax rate = freight + customs duty + import tax 20% + (sales tax 20% - import tax 20%)

UK VAT tax returns: Once you have a VAT number, you need to file a tax return with HMRC (UK Inland Revenue Service) every three months.

Note: The first declaration is when the tax bureau sends an email and when to declare, generally within 2-3 months, and then every three months.

2) According to the regulations, a formal declaration should be made: no matter how much the sales amount of the British warehouse or FBA shipment, it must be declared and taxed to the tax office.

1.To do zero tax return, the customer has no sales business in the UK, and there is no need to provide any information to do zero tax return, 2Do the normal declaration and submit the information (non-zero report):

2) Customs import documents shipped to the UK with this tax number, such as tax bills (please refer to the preparation list for details).

Fill in the declaration of the above information**, the customer confirms**, signs and scans, provides a scanned copy, and our company handles the tax declaration. Our company's tax number declaration is divided into quarterly declaration and annual declaration.

What you need to apply for a VAT number:

1. Scanned copy of the qualification certificate of the British company.

2. Scanned copies of the applicant's identity documents (ID card, passport) 3. Provide 2 valid address certificates.

4. Basic information of the company and product category.

5. Provide any of the following items for the applicant: household registration book (personal page), driver's license, marriage certificate, unmarried certificate, birth certificate, hospital medical records, employee certificate, real estate certificate, housing lease contract, credit card bill, bank card bill, water bill, electricity bill, natural gas bill. (Scan or photograph).

1. Input documents, VAT payment documents, bills provided by logistics companies;

2. Sales documents, that is, bills issued to customers or PayPal sales data or monthly bank bills;

3. Procurement and sales data, goods purchase documents;

4. Other expense documents, i.e., expense documents generated in the UK.

Quarterly filing, complete the declaration and pay taxes before the 7th of the next month of the reporting period.

For example, if you declare in May 2020 from February to April 2020, you should complete the declaration and pay the tax to the tax bureau account before June 7, 2020.

1. The UK Finance Act 2018 stipulates that if a non-UK business that stores goods in the UK does not meet the UK VAT registration requirements, it must be prevented from continuing to sell goods in the company after it is discovered. This means that Amazon, eBay and other e-commerce platforms will require sellers to submit VAT numbers in order to continue selling goods.

2. If it is found that the VAT number of others is borrowed or the VAT number is invalid, the goods may be detained and cannot be cleared.

3. If you do not use your own VAT number when exporting your goods, you will not be able to enjoy import VAT refund.

4. If you fail to provide a valid VAT invoice to the overseas customer, the customer may cancel the transaction.

What are the implications of not registering for a UK VIP number? If you are opening a company in China, you don't need to register for a UK tax number, and if you are opening a company in the UK, then you should respect the local tax policy.

The UK is one of the best places for entrepreneurs to consider conducting and running a business, because the local legal system in the UK is the most sound in the world, coupled with a sound economic system and banking system, so if investors want to develop their business, the UK is definitely the first choice; Although the tax rate in the UK is quite high, it is only limited to having an actual business in the country. What can you do with a UK company?

After having a UK company, you must remember to apply for a UK tax number, the types of UK tax numbers include personal income tax (income tax), corporate income tax (corporation tax), value-added tax (value added tax), consumption tax (consumption tax), and other types (other tax), other types are not too much to introduce, we often say that the British VAT tax number is actually value-added tax, In the UK, all companies need to register a UK VAT number after establishment, so what is the use of registering a UK VAT number, the UK VAT number is mainly used to pay VAT, and sellers on Amazon UK can only pay the corresponding tax if they have this UK VAT tax number.

Nowadays, the UK VAT number has become an important key factor in determining whether cross-border sellers can sell on European e-commerce platforms. The relevant departments of Amazon in the United Kingdom have been emphasizing that sellers are required to register for a UK VAT tax number, and Amazon sellers who do not provide a VAT tax number will be blocked, and even FBA inventory in Europe will be sealed. At present, the audit work of the UK tax office is in full swing.

What information do I need to apply for a UK VAT number?

The documents required to apply for a UK VAT number include: the business license of the UK company or a scanned copy of the business license, and the original or scanned copy of the applicant's ID card. At least any of the following is also required for the applicant:

Any one of these items, such as household registration (personal page), driver's license, marriage certificate, unmarried certificate, birth certificate, real estate certificate, housing lease contract, credit card bill, bank card bill, water bill, electricity bill, natural gas bill, etc.

Once you have the relevant information, do you know what the vetting process is for applying for a UK VAT number? First, first of all, submit an application to the UK Inland Revenue Office**, which needs to be signed by the legal person of the company; Second, a reply letter will be issued after the approval of the UK Inland Revenue Office, and the company's legal person will sign it again and submit it to the UK IRS; Thirdly, a notification letter from the UK Inland Revenue Office for the issuance of a VAT number; Fourth, the UK Inland Revenue Office issues a VAT certificate; After the UK IRS issues a VAT certificate, and after the relevant personnel review and there are no problems, you can successfully apply for a UK VAT number.

1. Input single car dust receipts, VAT payment documents, and bills provided by logistics companies;

2. Sales receipts, bills or PayPal sales data or monthly bank bills issued to customers;

3. Procurement and sales data, goods purchase documents;

4. Other expense documents, i.e., expense documents generated in the UK.

1. Tax number declaration: Only after receiving the VAT tax number, can the import and sales business in the UK be carried out. To maintain the normal operation of the VAT number. Clients are required to complete quarterly filings every 3 months.

2. It is necessary to submit information truthfully in the declaration. If the information is found to be untrue, a penalty of about 20% to 80% of the tax will be incurred, and the judgment will be given according to the situation. Overall, this is an approach that outweighs the cost.

UK VAT application and tax payment conditions:

The company is incorporated in the United Kingdom:

1.In stock in the UK.

2.Sold within the UK and the sale within the UK exceeds the VAT threshold of £85,000 The company is incorporated in other EU countries:

1.In stock in the UK.

2.Sales in the UK exceed the distance selling threshold of £70,000 in the UK, and the company is established in a country outside the EU (e.g. China):

1.In stock in the UK.

2.There is no inventory in the UK, and one-year sales from distance sales from other EU countries to home countries exceed the country's distance selling threshold of £70,000.

There are two tax rates: the standard rate of 20% and the low tax rate.

The annual cumulative sales of the UK-issued FBA are expected to not exceed 150,000 pounds, and you can apply for a low-tax rate declaration, but the low-tax rate declaration is not deductible for import VAT.

Cumulative annual sales of more than £230,000 should be withdrawn from the low tax rate scheme and the standard tax rate will be used.

If the annual cumulative sales are between 150,000 and 230,000 pounds, the tax rate can not be changed, but after being found out by the tax bureau, you need to pay back tax.

Take the registration process of J&P accounting firm as an example:

1. Entrust the tax ** to register for the UK VAT and sign the ** contract.

2. Provide the information of VAT registration to the French tax representative as required;

3. The audit materials passed by the financial and tax representative shall be submitted to the tax bureau;

4. After a period of review, the tax bureau will issue a tax number and upload it to the seller on the platform.

In addition, you need to fill in the attachment**:

1) Form 64-8 Please fill in the information on the left of **: the name of the legal person (pinyin), the name of the company (in English or pinyin - the same as the name of the company used to register eBay Amazon), sign (pinyin) in the signature field and fill in the date.

3) **Agreement must be filled in with the company name, address, date, and stamped on the two pages of the company's name.

In addition to this, you will need to provide two sales reports that use each Seller Names IDS

The first sales report: the sales report for the month before the start of sales to the UK from overseas warehouses (including FBA).

The second sales report: a sales report for one month from the date of commencement of sales to the UK from overseas warehouses (including FBA).

HMRC makes it clear that it is the responsibility of merchants to register for VAT in a timely manner and provide accurate information. Please make sure that the VAT information required for registration above is correct, and that this VAT effective date is the date on which your company makes its first sale in the UK (including sales made through the ** platform and offline third-party warehousing and sales services).

It is important to note that if you provide a VAT effective date other than the date of your first sale in the UK, then the tax office has the right to trace your correct VAT effective date and require your company to pay the tax owed, even penalties and interest, once they have the relevant evidence.

For companies that do not comply with the UK VAT registration and reporting requirements, the tax office has the right to submit a JSL (Notice of Joint and Several Liability) to your sales platform, which will eventually remove you from the platform.

In addition, if the VAT application fails due to inaccurate information provided, or if you need to be subject to a tax investigation by the UK Inland Revenue Service, then all responsibilities and consequences will be borne by your company applicant. JP Accountants shall not be liable for any such occurrence.