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bigduckontax, Accountant
Category: Tax
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A limited company registered in UK have 2 shareholders /

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Hi,
A limited company registered in UK have 2 shareholders / Directors. One based in UK and the other one based abroad Country X (Outside Europe). Company is VAT registered in UK but only buying goods from USA and selling directly abroad in Country X. Purpose of having company registered in UK is to give global image and USA company doesn't charge state taxes for company being VAT registered in UK.
How does company go about paying corporation tax?

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

At the end of each company accounting year you must make a Corporation Tax (CT) return on line. The system will advise you of the tax due and how to pay it.

Customer: replied 8 days ago.
Would it be a nil tax return for a company? As company is already paying tax abroad?
All VAT returns are being files as nil returns.

In which country is it paying corporate taxes?

Customer: replied 8 days ago.
Ukrain

The UK has a Double Taxation Treaty with the Ukraine which embraces CT. Any CT paid to that country is allowed as a tax credit against a similar UK liability.

Customer: replied 8 days ago.
if company has make $100,000 dollar sales and net profit is $40,000 on which company will pay Corporate tax in Ukrain.
Does the company declare full income in UK? And what tax liability comes up they minus the tax already paid and pay difference only?

The one trading to the Ukraine.

Yes, you have the procedure correct.

Customer: replied 8 days ago.
Brilliant!
Last question there is no VAT applicable at all? And filing nil returns are fine ?

Supplies outside the EU are zero rated.

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Thank you for your support.