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bigduckontax
bigduckontax, Accountant
Category: Tax
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Good day, I would like to know how can I obtain VAT number

Customer Question

Good day,
I would like to know how can I obtain VAT number for LTD company registered in UK. What requirements and conditions.
We don't have office in UK and currently selling services to Asia, but planning to start trading with other EU countries which is a problem without VAT number right now.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
You can find out how to register your company for VAT here:
https://www.gov.uk/vat-registration/how-to-register
There is no requirement to register for the tax until the turnover reaches or approaches 81K in a year. Indeed HMRC will be loath to register the company at all at lower levels unless its outputs are likely to be exports. Exports are zero rated and so the cash flow would be improved by an ability to reclaim input tax. If you are trading with other EU countries then your company will be in the realms of the reverse charge. Providing you have the trading partner's VAT number or the equivalent you charge VAT at the standard rate and immediately make an equivalent input tax entry. It is quite a palaver as you have to complete periodic EU Sales Lists. A company with which I am associated made a reverse charge a quarter of a century ago and has not done one since. It still receives the Sales List to complete!
Once registered your company will have to file quarterly returns on line. This is one of the HMRC IT systems which actually works rather well.
When I was operating a company which was not registered the invoices were endorsed to that effect to advise customers of the organisation's status as to the tax.
I do hope that I have assisted you with your question.
Customer: replied 2 years ago.

Hello Keith,

Thank you for quick reply.

Do we need to have office, employees in UK to register for VAT? One more thing which bothers me, do we need to have UK bank account?

I've found that we had to have or plan to have 82k VAT taxable income in a year. What if we plan, but will fail to reach that point?

Expert:  bigduckontax replied 2 years ago.
Then you can cancel your registration. It is all in the link I have already sent you. You can appoint an agent for an UK address, but there is always the registered office of the company. You can find out all about business tax here:
https://www.gov.uk/business-tax/vat
You would need to have an UK bank account to receive the reclaimed input tax.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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