Registering for VAT - Value Added Tax

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 country 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 get a VAT number, but there is a bit of work involved; including an interview.

How do I start?

VAT - the European sales tax, has to be collected and paid by a company. Companies have to register in the country where they are trading - as a first preference, or in the country of incorporation. If the company has been incorporated in the UK, but is not initially going to tradehere, it is difficult to get a VAT number. However, we can do this for you. The tax agency, HMRC, need evidence of trade and evidence that there is an intention and a capacity to do business in the near future.

Items that can be persuasive in getting a VAT number:

  • Suppliers in the UK and customers in the UK
  • Appointment of a UK based Tax Representative
  • Appointment of UK based officials, such as a Company Secretary or a Company Director

Much of this initial work is done through the company presenting information to the tax authorities, and the tax authorities replying with requests for further information. Normally, these days there is a visit to any premises of the company in the UK. In many cases, an expert represents the company at these meetings, but it is useful that the client can represent the company personally at these meetings.

Please complete our VAT application form online