Value Added Tax (VAT) is a tax on sales which applies to most goods and services supplied in the UK, and also to goods imported from outside the EU.
Where an overseas business sales directly to non-VAT registered UK consumers or businesses, then they (overseas business) are required to register for UK VAT. It's important to note that the VAT registration threshold of £83,000 does not apply to overseas businesses with no permanent establishment in the UK. If however the business is based in the EU, then the threshold for registering for UK VAT is £70,000 through the distance selling mechanism.
Examples of businesses that are required to be VAT are as follows;
As an overseas business, it's recommended you have a tax agent represent your business as VAT is one of the most complex taxes in the UK, and the fact that an exert will act on your behalf in the event of an investigation by the tax authority. You must note that, you do not have to appoint a tax agent as you can register and account for VAT directly with HMRC. You will however safe valuable time if you appoint Midford as your tax agents.
Please note, there are cases where HMRC may request for an overseas company to appoint a fiscal representative in the UK in order to register for VAT. A fiscal representative will become jointly and severally liable for the VAT owed by the business. The costs associated with appointing a fiscal representative can be onerous and discouraging as the fiscal rep will want compensation for the risks associated with such appointment. We will walk you through the requirements, and you only commit when and if you think it's worth appointing a fiscal representative.
Our services to your business;
Below are the countries where majority of our overseas clients are based;
We have published some free articles targeted at overseas businesses on our website that you may find useful.
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