VAT

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When your company registers with the UK registry, it is assigned a registration number. This number, along with your company’s name, serves as identification and must be included in invoices sent to customers or received from suppliers. It is only made up of numbers, such as 123456789.

According to the UK tax law, your company is requires to register for vat when the taxable vat turnover is over 85.000 GBP in the last 12 months.

If your company don’t overcome this threshold, you don’t need to register for vat.

However, regardless of your company turnover, you need to register for vat if your company:

– sell digital products in EU;

– sell goods in EU countries ‐ you may need a local vat code.

The vat taxable turnover is the total amount of your sales, excluding vat exempt or not taxable operations (for example EU b2b sales – reverse charge).

There are two different procedures to register for vat, depending on the circumstance that your Company has or not a UK resident director.

1) Vat registration for company with UK resident director.

In this case one of the company director needs to provide their Nin (national insurance number) to Ltd24ore.com and filling out the requested form.

2) Vat registration for company with UK resident director.

In order to register your company for vat, you need to provide 2 pieces of the following documents of any of the directors:

– birth certificate;

– marriage or divorce certificate;

‐ rental agreement;

– payslip.

You also need to declare a place of business for vat purpose.

The first step is to register with HMRC for VAT. This enables you to send a VAT return, which functions similarly to a self-assessment tax return. If you are a sole proprietor, you can register for VAT. If you own a limited company, your small business must be VAT registered as well.

VAT registration is required. If you file a tax return for your business that exceeds the £85,000 threshold without registering for or paying value-added tax, you will face investigations and penalties. VAT is not an optional tax.

Once registered for VAT and earning more than the threshold, you can charge VAT to customers on goods and services.

VAT (Esteem Included Assess) may be a assess that’s connected to your sales to European clients if your company is VAT obligated (that’s in case it contains a VAT number). In these circumstances, VAT is included or not to solicitations agreeing to a few rules.

A few operations are excluded from VAT indeed for VAT-liable companies. Particularly, costs from non-EU suppliers (prohibit VAT), and EU companies with substantial VAT numbers (incorporate 0% VAT). VAT isn’t included to these buy solicitations VAT, which suggests that you just are not PAYING VAT on those solicitations from your providers.

In any case, in the event that you’re collecting VAT on deals solicitations to your clients (for illustration a deal to a German or French person), the result may be negative (i.e: you wish to pay VAT another month), since you collected more VAT than you paid, indeed in the event that generally your costs surpassed your deals.

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