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Thank you for your reply, I'm still confused, could you please provide me with more details?
do you suggest me to register an UK organization for our distribution center in UK or register an UK company for our Dubai company?
We want to keep receiving the payments from our UK customers in our Dubai bank account (not the UK distribution center).
in regards ***** ***** which company has to be registered for VAT? and how do we handle output tax since the company which is selling goods to UK customer is our Dubai based company not our UK distribution center.
So all the transactions (money we receive from our customers) will be considered as activity/turnover of the UK company and eligible for any UK corporate tax, is that right? if yes, it's not the right solution for us since the purpose of keeping transactions in Dubai is, the business is running from Dubai and Dubai is tax haven.
Yes, the acivities would attract Corporation Tax (CT), but I assume that the Dubai parent would raise invoices against the UK company to reduce UK profits to zero thus making the CT position academic. That is how the likes of Vodafone, Amazon and Starbucks all operate to move profits into tax havens like Gibraltar, Turks and Caicos Islands and, of course, the Gulf States.
thank you for detailed explanations, does the UK company have to be a branch of our foreign company? or we can register an individual private limited company for this purpose, if we can, how can we show the connection between these two companies to HMRC?
Not necessarily, but all the shares of the UK company could be held by the Dubai organisation effectively so making it. Alternatively it could be a stand alone company with one of more individuals holding the shares. As for HMRC you merely tell them of the position; it's that simple.
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