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UK VAT number

Discussion in 'Business & Tax Advice' started by kalekom, Sep 28, 2009.

  1. kalekom

    kalekom Junior Member

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    I'm planning to establish UK LTD and register for VAT no.
    One consulting company claims that it's not easy to get VAT number. I need to provide HM Revenue detailed synopsis of the companies activity.

    Is it as complicated as that?
     
  2. Delboy2424

    Delboy2424 Regular Member

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    you make your mind up:

    When to register for UK VAT

    You're doing business in the UK, or intend to start

    You may need to register for VAT, or you may be able to choose to register voluntarily, if you are doing any of the following kinds of business in the UK:

    Supplying goods or services within the UK. If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £68,000, or you expect it to go over that figure in the next 30 days alone, you must register for VAT. For more information, see the page in this guide on calculating your VAT taxable turnover.
    Taking over a VAT-registered business from someone else. You have to add your own VAT taxable turnover over the last 12 months (if any) to that of the business you're taking over. If the total goes over the registration threshold on the day of the takeover (currently £68,000), you'll have to register - but you can ask HM Revenue & Customs (HMRC) if they can make an exception and allow you not to register for VAT on this occasion. You will have to show HMRC that you expect the combined turnover in future to be below the de-registration threshold (currently £66,000) - for example, because you won't be opening for the same number of hours.
    Receiving goods from other countries in the European Union (EU). If you have received goods from other EU countries in the UK (these are known as acquisitions) with a total value greater than £68,000 in the current year since 1 January, or you expect to acquire more than that value in the next 30 days alone, you must register for VAT.
    Supplying goods or services from the UK to other countries. See the page in this guide on how you supply goods or services from the UK to other countries.
    If you don't have a place of business in the UK or live here
    If you have to register for one of the reasons described above, but you don't live in the UK or have a place of business here, then you must register as a Non-Established Taxable Person (NETP). You may also want to appoint a tax agent to keep VAT records and accounts on your behalf - that's up to you.

    If your trading is below the threshold for registration
    If you're carrying out one or more of the business activities described above but you haven't crossed the registration threshold, you can still apply to register for VAT voluntarily - it might be of benefit to you. For more information, see the page in this guide on voluntary registration. In any case, you should regularly check your turnover to see if you need to register.

    If you have gone over the threshold for registration temporarily
    If you have only gone over the threshold temporarily, and you can demonstrate to HMRC that in the longer term you will only be trading below the de-registration threshold of £66,000, you can apply for exception from registration. You can ask HMRC if they can make an exception, and allow you not to register for VAT, by filling in a VAT registration form, stating why you are applying for an exception.

    If HMRC agree to make an exception and allow you not to register this time, you must let them know of any relevant change in circumstances - for example, if your turnover goes over the threshold again.
    If HMRC don't agree to make an exception, you will become registered for VAT from the day you should have been registered. You will need to account for VAT from that date.
    If you haven't started to trade yet
    If you intend to start carrying out one of the business activities described above, you can choose to register for VAT voluntarily. See the page in this guide on voluntary registration.

    If you do business in the Isle of Man
    Although the Isle of Man is not part of the UK, for VAT purposes you should add together the value (or estimated value) of VAT taxable supplies made in both the UK and the Isle of Man to work out if you need to register. For information on other supplies you may need to consider, see the page in this guide on calculating your VAT taxable turnover for other supplies you may need to consider.
     
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