How to register for VAT in the UK

What is currently required for the quarterly filing of VAT in the UK:

Input documents, i.e. import VAT payment documents, C79 documents or bills and output documents provided by the logistics company, i.e. bills issued to guests.

or monthly bank statements, purchase and sales data, goods purchase receipts; Other expense documents, i.e. expense documents incurred locally in the UK.

Introduction of VAT.

UK VAT is the abbreviation of Value Added Tax (VAT), which refers to the tax charged by the Merchant Tax Agency (HMRC) to consumers for the sale of goods or services in the UK, or the import of goods from abroad into the UK.

VAT value-added is applicable to all merchants who use overseas warehousing on various platforms (eBay, Amazon, etc.), even if the overseas warehousing service you use is a third-party logistics company, and you have never opened a local office or hired local staff in the UK, but your products are shipped from the UK and the transaction is completed. Merchants who currently use direct shipping services will not be affected.

1) How to calculate VAT

Import tax = customs duty + import VAT Customs duty = value of goods * tariff rate.

Import VAT = (declared value + first-mile freight + customs duty) * VAT rate Sales VAT = sales value-added part * VAT rate.

2) VAT rates (three rates):

The standard tax rate of 20% applies to the vast majority of goods and services

Low tax rate of 5% (e.g. household electricity or gasoline).

0% tax rate (in rare cases).

VAT registration.

1) Non-UK registered companies or individuals and local individuals or companies in the UK can be handled, generally Chinese sellers are mainly handled in the name of non-UK registered companies or individuals, if it is a local individual in the UK, the company needs to provide personal information and NI number.

2) Generally, the registration can be completed in 4-6 weeks, and the fastest is about 3 weeks. Registering VAT can give away EORI, which is a common customs clearance registration number in the European Union, which is used for customs clearance.

You can contact a professional ** to calculate your taxes and answer your filing questions, such as Cloud Catman.

1. Scanned copy of the business license of the domestic Wujing company or the CI and BR of the Hong Kong company or the registration certificate of the British company.

2. A copy of the signature of the legal person's ID card.

3. Valid proof of address of the legal person, please provide the bank account with the name and address of the legal person, the tax bill, and the water and electricity bill, one of which is sufficient;

4. Please provide at least a copy of the signature of any two of the following: passport, household registration book (personal page), driver's license, marriage certificate, real estate certificate, unmarried certificate, birth certificate, housing lease contract.

Documents required for UK VAT number application:1. The company's business license is scanned.

2. Scanned copy of ID card and passport of the company's legal representative.

3. Proof of home address of the company's legal person or self-employed person (water and electricity bills, bank bills, and gas bills are valid documents within three months).

4. Marriage certificate of legal person (married).

5. Proof of origin.

6. Social security number.

7. Fill in the application form.

The application process for a UK VAT number: provide information - sign the entrustment agreement - pay the deposit - submit the information to the UK Revenue and Customs Office - the UK Revenue and Customs Office absorbs the information and feedback the acceptance notice - the UK Revenue and Customs Office conducts a review of the information on the opening and loss - issues the registration record and the success of the information - pays the balance - sends the UK VAT number information.

The following documents are required to register for VAT in the UK:

1. Personal (or company legal person) ID card sells a copy of the front and back of the block or passport;

2. Business license of the company (BR and CR are required for Hong Kong companies);

3. Two supporting documents of the legal person are missing (household registration book, certificate of nonsense in work, marriage certificate, lease contract, 4102 real estate certificate);

4. The basic information of the store and the corresponding sales data;

5. Business license, legal person ID card and Amazon store information.

1. Supporting documents 1. Provide: company business license (or self-employed business license) 2. Provide the applicant (not necessarily a legal person): ID card, passport (if any) 3. Provide at least any of the following items for the applicant

Hukou (personal page), driver's license, marriage certificate, unmarried certificate, birth certificate, hospital medical records, employee certificate, real estate certificate, lease contract of the collapsed house, credit card bill, bank card bill, water bill, electricity bill, natural gas bill.

Note: Please scan or take a photo of the documents to be submitted. Knowing God.

2. Basic business information.

1. The English name of the company (it is recommended to be consistent with the e-commerce platform):

2. Business model: Danyuan (e.g., Amazon platform sales) 3. Product type:

For example: silver jewelry) 4, UK local (FBA or other UK local warehouse delivery) start sale date: (format dd mm yyyy).

5. Estimated annual turnover (GBP).

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.

There are 4 ways to file a VAT return:

1. Zero declaration (that is, to report 0, do not pay tax, if you have sales in the UK, zero declaration is risky, the risk is determined according to the amount of sales, the high risk of sales, this is for sellers who do not want to pay taxes, but to bear their own risk).

2. Low declaration (understood as false declaration, for example, you actually have to pay 10,000 pounds of tax in the quarter, but you don't want to pay so much tax, you can make a low declaration and only pay part of the sales tax, which is also risky).

3. Low tax rate declaration (this is legal, the tax rate is in the first year, but three conditions must be met.)

1.Annual sales must be less than £150,000.

2.The import quota is £250 per quarter.

3.Imports divided by sales are 2%.

There are many new seller customers who only meet the first condition, because many customers use the tax number of the freight forwarder to clear customs, so that their VAT tax number can not meet the requirements of point 2 and 3, if only meet the first point of the condition to continue to use the low tax rate declaration is risky, but the risk is relatively low, if the formal operation of this kind of advice customers use their own tax number to clear a small batch of goods in the quarter, so that 250 pounds is very well satisfied.

4. Normal declaration (that is, the actual declaration tax rate of 20%) can be deducted from the import VAT tax if you do the normal declaration, but you can not deduct the VAT customs clearance with the freight forwarder, you must use your own tax number to clear the customs to deduct, after customs clearance, the freight forwarder should provide customs clearance documents such as: C88 documents.

1. Materials required for VAT declaration in the UK1. Purchase documents, i.e., import value-added tax documents, C79 documents or bills provided by logistics companies;

2. Sales documents, i.e., bills or sales data or monthly bank bills issued to customers;

3. Purchase and sale materials, goods procurement documents;

4. Other expense documents, i.e., fee documents generated locally in the UK2. Specific steps for UK VAT declaration1. The enterprise fills in the declaration form (inclusive).

1) The number of goods sold by VAT number during the reporting period.

2) VAT on sales.

3) The import amount of this purchase.

4) This import purchase includes VAT amount.

2. Provide supporting documents.

1) Proof of sales amount.

2) VAT certificate included in the purchase amount.

Such supporting documents mainly include invoices and import declaration tax documents. Invoices must include the merchant's VAT ID information.

3. Deadline for submission of application materials.

In order to file tax returns in a timely manner, businesses need to submit returns and supporting documents within 8 days after the expiration of each filing period.

4. Customs import documents with a tax ID number provided to the UK. It's up to you to declare the UK VAT.

Zero filing: The merchant has no sales presence in the UK during a reporting period. Select Zero Declaration.

Actual declaration (C88 and store sales data are provided to the accountant every quarter, and then declared and paid for tax) tax rate: the standard UK VAT rate is 20%, for special goods and services, there is a preferential tax rate of 5%, and the O tax rate.

There is also a small tax rate.

There are two ways to file a UK VAT.

If there is zero declaration, there is no need to pay taxes (there is a risk of being investigated).

Actual declaration (C88 and store sales data are provided to the accountant every quarter, and then the tax is declared).

In the UK, there is no need for an annual VAT number for each VAT number, but it is required to file a quarterly VAT declaration with HMRC (HMRC) to settle the tax refund (import VAT) and tax payment (sales VAT), and calculate the actual VAT (VAT) to be paid. Even if there is no sales, you need to make regular tax returns every quarter.

It should be reminded that the "quarter" mentioned above is not calculated according to the natural quarter, but is related to the seller's VAT registration time, that is, from the date of registration, once every three months, and in the fourth month, the seller needs to make the first quarter VAT declaration. And so on.

Companies or self-employed individuals in Chinese mainland (or Hong Kong) need to provide the following information to apply for a UK VAT number: 1. Supporting documents 1. Provide: company business license (or self-employed business license).

2. Provide the applicant (not necessarily a legal person): ID card, passport (if any) 3. Provide at least 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.

Note: Please scan or take a photo of the documents to be submitted.

2. Basic business information.

1. The English name of the company (it is recommended to be consistent with the e-commerce platform):

2. Business model: (e.g., Amazon platform sales).

3. Product type: (e.g. silver jewelry).

4. UK local (FBA or other UK local warehouse delivery) start sale date: (format dd mm yyyy).

5. Estimated annual turnover (GBP): If the estimated annual turnover is £150,000 or below, the FRS low tax rate will be applied by default, and the low tax rate is generally high.

VAT stands for Value Added Tax, which is the after-sales value-added tax commonly used in EU countries, that is, the profit tax on the sale price of goods. When goods enter the UK, import duty is paid on the goods; When the goods are sold, the merchant can refund the import VAT and then pay the corresponding sales tax according to the sales amount.

How to find out if you want to apply for UK VAT:

Beijing Yaxin Consulting has summarized the following business based on the business of applying for UK VAT many times:After the company is registered, it is not mandatory to apply for a VAT number, if the company operates in the UK and has an annual turnover of 10,000 pounds, it is required to apply for a tax number, which is the UK** requirement. If it is used to settle in cross-border e-commerce platforms such as Amazon, and the official requires a tax number to file a tax return, you need to apply for a tax number.

Information required to apply for a UK VAT number:

Individuals, UK companies, Chinese companies or Hong Kong companies can apply for a UK tax identification number;

Individual application application is required to provide:

1) VAT application form;

2) Scanned copies of the front and back of the applicant's passport or ID card;

Choose from two of the following supporting documents:

3) Recent bank card statements;

4) Recent credit card statements;

5) Housing loan details;

6) Rental contract.

7) Birth certificate.

A UK, Chinese or Hong Kong company can apply for a UK tax identification number and you need to provide:

1) VAT application form;

2) Scanned copies of the front and back of the company's legal person passport and ID card;

3) Scanned copy of UK company registration certificate or domestic business license or Hong Kong company registration certificate and business registration certificate;

4) Proof of address.

1) Recent bank card statement;

2) Recent credit card statements;

3) Housing loan details;

4) Rental contract.

5) Birth certificate.

Basic business information about the company, such as the scope of business or a list of products sold, is also required.

After 14 working days, HMRC (UK Revenue Authority) will mail you a VAT registration certificate.

How to apply for VAT in the UK:2.Find a ** company to apply on your behalf;

Considerations for UK VAT applications

The provider of personal data must be a director, shareholder or legal secretary of the company.

After applying for a tax number, you need to file a tax return every quarter, and the fee is about 2-3000 RMB.