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Sam
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Category: Tax
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If i sell clothing in uk but my company is in canada. do i

Resolved Question:

if i sell clothing in uk but my company is in canada. do i need to register VAT and is there any taxt problem?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Also I use a virtual office address, can i use it for invoice address? will this affect any tax problem?
Expert:  Sam replied 1 year ago.

HI

Can you expand on

1) Whether you are in the UK or Canada

2) Whether your virtual office is in the UK or Canada

3) Are aware of import duties by UK customs

Thanks

Sam

Customer: replied 1 year ago.
Hi Sam,1) I am in UK. just company registered in Canada
2. The virtual office is in UK
3. No aware of import duties by UK customsI am trying sell direct to the retail, (not huge amount) or sell through online platform.
Expert:  Sam replied 1 year ago.

Hi

Thanks for your response

Then you will be liable to UK tax and also VAT (if you exceed the VAT 12 month threshold of £83,000) THis is as you are in the UK, and you will operate from the UK and the UK presence (you) creates a UK tax position (for Income Tax and VAT)

Thanks

Sam

Customer: replied 1 year ago.
Hi Sam,Thanks for the response. I am wondering if i am about to leave Uk but only do trading business with others. Do I still need to register for the VAT?Thanks
Expert:  Sam replied 1 year ago.

Hi

If you will leave the UK and not spend more than 90 days a year here, and have no virtual or otherwise UK presence and d not sell to the UK - then you have no UK obligations

Let me know if I can assist further, or, if you have all that you need, then it would be appreciated if you could rate me for the level of service I have provided (or click accept)

Thanks

Sam

Customer: replied 1 year ago.
Hi Sam,
If i have a virtual office address, Even if i am not present in UK,I still need to register for VAT? I do wanna sell in UK, but i am not going to be here more than 90 days though. Just directly doing business through online platform or sell to the retailer.Thanks!
Expert:  Sam replied 1 year ago.

Hi

Yes you will be liable to UK Tax and VAT as you will create a UK trading presence

Thanks

Sam

Customer: replied 1 year ago.
Can I register VAT with overseas company? Thanks
Expert:  Sam replied 1 year ago.

Hi

Thanks for your response

If you just have a company overseas and you are not in the UK then no there will be just import duties and VAT (but this is charged on your customer when the items are sent into the UK)

If you are in the Uk then you will be treated as being the presence in the UK and your companies tax obligations will fall into the UK

But if you are not in the UK but the Virtual company is - then for the companies tax obligations this will fall into the UK but you as the employee (director) may be UK tax exempt on salary as a non resident.

If you have all that you need from your original question, then it would be appreciated if you could rate me for the level of service I have provided, but of course if you have more questions linked to this original post, then do ask

Thanks

Sam

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