How to register VAT in the UK?
In order to obtain a VAT number, it is necessary to documentarily confirm that the company's taxable turnover has exceeded or will soon exceed £ 85,000 (this is the registration threshold in 2017). In case of voluntary registration for VAT, the registering authority requests additional information - type of activity, contact details of the company, contact details of business partners in Europe.
Such documents as invoices/contracts due to European sales/purchases for more than £ 85,000 will be required.
Information necessary for registration
- The name of the company;
- Registration address;
- Details of the bank account (bank name, account number, bank statement);
- Responsible person, his/her address, as well as the identification number of the responsible person in his/her country of origin (if any);
- Description of the type of business (business description);
- Description of goods/services that the company buys/sells;
- Countries in which the purchase is made;
- Countries in which goods/services are sold;
- Invoices for European sales/purchases amounted to £ 85,000;
- Bank statement for the last 12 months or less, confirming the activity of the company;
- Expected turnover of exactly VAT taxable supplies during the next 12 months;
- Will the company make any deliveries non-taxable with VAT? If the answer is yes, for what amount (per year);
- If the company is going to purchase goods from other EU member states within the next 12 months, indicate the total estimated value;
- Will the company sell products of other EU member states in the next 12 months? If yes, please indicate the total estimated cost.
Data to be provided by the director or partner of the company
- Copy of passport
- National Insurance Number, or
- Unique Tax Reference Number (if any);
And also two documents from the following:
- Mortgage agreement;
- Rent agreement;
- Birth certificate;
- Certificate of marriage;
- Certificate of divorce;
- Official document from the employer, which contains the name, date of birth, tax number.
Each company registered in the VAT system must submit quarterly reports to the UK tax authorities - HMRC. If the English company submits zero reports for several reporting periods in a row, then there is a probability that VAT payers will be excluded from the register and the number can be canceled.
Value added tax (VAT) is levied in Great Britain at a rate of 20% (2017). When trading with partners from EU countries who also have a VAT number, the tax rate is 0%.
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