FAQ 2018-03-28T14:02:22+00:00
How VAT Direct help for your VAT? 2018-03-22T15:29:39+00:00

We will guide you for what to prepare for each and every stage of VAT requirements. We will provide you with a list of documents you may prepare ie) Business registration and ID for registration and VAT return completion. We may also deal with your VAT issue such as VAT inspection or VAT payment demand letter by HMRC.

What is VAT? 2018-03-22T15:34:16+00:00

VAT stands for Value Added Tax.

If you are VAT registered you need to add 20% (2013) on top of whatever you sell.

To make things a little more complicated there are certain things that are zero rated like: food, books, newspapers and magazines, young children’s clothing and footwear

but I wouldn’t worry about these for now.

Who is online seller? 2018-03-22T15:30:02+00:00

HMRC defines you are an overseas seller if you sell goods stored in the UK to UK consumers and don’t have a business establishment in the UK.
You’re also an overseas seller if you’re based outside the EU and sell goods to a UK consumer, then import them into the UK.

When do I have to register for VAT? 2018-03-22T15:46:54+00:00

Overseas sellers must register for VAT if they meet all of the following conditions:
they’re selling, or will be selling taxable goods in the UK as a business activity now, or will be within the next 30 days – this includes selling goods:

in the UK at the point of sale to a UK consumer, and then imported into the UK by the seller they don’t have a business or other fixed establishment in the UK relating to any business you carry out they advertise or offer goods for sale on a website that will be supplied in the UK.

an overseas seller selling goods as a business activity in the UK (there is no threshold)

When do I have to register for VAT? 2018-03-22T15:47:34+00:00

If in the previous 12 months your turnover has reached the VAT threshold amount of £79,000 (As of April 2013) or you expect your turnover to reach £79,000 in the next 30 days then it is mandatory that you must register for VAT.

If you are under the VAT threshold amount of £79,000 then you do not have to charge VAT on your goods and services. The threshold amount can change so make sure to check the HMRC website each year to ensure you are not over or under this amount.

How do I register for VAT? 2018-03-22T15:48:27+00:00

Once you are at the required threshold amount or if you have voluntarily registered for VAT (more on this later) you will need to fill in the VAT registrations forms on the HMRC website. You will then receive a VAT registration number, which you will need to add to any raised invoices and a confirmation certificate.

How do I register for VAT? 2018-03-22T15:49:21+00:00

You will need to fill in the VAT registrations forms and submit to HMRC within the 30 days. You will then receive a VAT registration number, which you will need to add to any raised invoices and a confirmation certificate.

When do I charge VAT on my sales and other supplies? 2018-03-22T15:51:12+00:00

You begin charging VAT on all sales and invoices from the day you register for VAT.

So, for example, if you register for VAT in April, but do not receive your VAT registration number until May, you would still start charging VAT on goods and services provided from April.

It can take up to 30 days before you receive your VAT registration number and certificate, so within these 30 you will still need to charge standard 20% VAT (2013) onto all invoices raised. Once your VAT number is received you will then need to include your VAT number onto invoices raised within this time.

 

Can I register for VAT even if I am not at the mandatory threshold amount? 2018-03-22T15:51:24+00:00

Yes, some businesses feel that having a VAT number adds a certain credibility and prestige to their company, so they voluntarily register for VAT.

How often is VAT paid? 2018-03-22T15:51:35+00:00

Every quarter you will need to fill in a VAT form to HMRC.

How do I reclaim VAT on my purchases? 2018-03-22T15:44:25+00:00

Every quarter (every 3 months) you would fill in your VAT return form (online only) and submit this to HMRC. This must show all your output tax-this is the total VAT your company has charged your customers on products and services which you have provided. You also include the VAT charges you have incurred on purchases for your company such as supplies, equipment, stock etc, this is known as input tax.

HMRC will then review your VAT form and should your outputs exceed inputs, you must then pay the difference to the government, however if your inputs exceed the outputs your company is then entitled to a refund.

Do I need UK address? 2018-03-22T15:52:08+00:00

It will be easy and safe to receive letters from HMRC if you hold UK address.

WILL I INCUR PENALTIES / SURCHARGES IF I DON’T FILE ON TIME? 2018-03-22T15:44:09+00:00

Yes. HMRC will issue penalties to you and place surcharges on your UK VAT account if you do not file on time.

Who is Tax agent? 2018-03-22T15:52:56+00:00

Tax agent is who you will appoint to deal with tax affairs on your behalf. Tax agent is registered with HMRC and should be authorised by each client to communicate on client’s behalf.

Do I need to appoint a tax agent? 2018-03-22T15:53:20+00:00

As an oversea business having appointed a tax agent will help handle tax affairs in timely manner.

How do I reclaim VAT on my purchases? 2018-03-22T16:00:17+00:00

Every quarter (every 3 months) you would fill in your VAT return form (online only) and submit this to HMRC. This must show all your output tax-this is the total VAT your company has charged your customers on products and services which you have provided. You also include the VAT charges you have incurred on purchases for your company such as supplies, equipment, stock etc, this is known as input tax.

Standard VAT Accounting 2018-03-24T04:40:59+00:00

One of the main advantages that most businesses gain from becoming VAT registered is being able to claim back the cost of VAT paid on any purchases for goods or services made through the business.

You will need to complete a VAT return every quarter and if you are using standard VAT accounting then your return will need to include:

Output tax – Output tax is term for the VAT that you have charged your clients or customers. This is the percentage (usually 20 per cent) that you have added onto the prices of your goods and services. Even if they have been invoiced but you are yet to collect payment, you must still include the VAT on your return for that quarter.

Input tax – Input tax is the what you yourself have been charged in VAT, the amount that has been added on to goods or services you have bought from your suppliers during that quarter. As with output tax, you must include anything billed during that period, even if you haven’t yet paid for it.

This means you have to pay and reclaim VAT according to the dates your invoices have been raised, not the dates they have been paid or collected.

Do I pay VAT when bringing goods into the UK? 2018-03-24T05:12:12+00:00

When your goods reach customs in the UK, you will have to pay import duty along with import VAT. However, the import VAT you pay at

customs is fully reclaimable if you are on the standard VAT scheme through a C79 certificate. We offset this reclaimable amount against the amount of VAT you owe on your sales, thereby reducing your VAT liability.

Will I incur penalties or surcharges if I don’t file on time? 2018-03-24T05:19:33+00:00

Yes. HMRC will issue penalties to you and place surcharges on your UK VAT account if you do not file on time.

How long will it take to get my business VAT registered? 2018-03-24T05:20:18+00:00

As HMRC are in a constant high demand for processing VAT registrations, this can take up to 14 days. However, VAT registrations are usually completed within a week, but should any extra information be required to complete the registration, the process could take up to 4 to 6 weeks.

What is an EORI number? 2018-03-24T08:24:20+00:00

The EORI number -(Economic Operator Registration and Identification) is an EU initiative that helps traders communicate with customs officials when they are importing and exporting goods. It is specific to your VAT number/your company, and is used when clearing your goods at customs in European countries. When we register your business for VAT, we will also apply for an EORI number for your business. This comes at no extra cost.

What documents do I have to submit to VAT Direct for VAT registration and compliance? 2018-03-24T08:24:45+00:00

For the VAT registration, clients will need to return all of the documents that we send to them, this includes the engagement documents, the VAT questionnaire (gathering all details for the registration) and they will need to provide the 3 evidence documents. During the process, it is possible that HMRC will require further information, at this point if necessary, we will contact the seller directly asking them to provide this.

What documents do I have to submit to VAT Direct to complete VAT reutrn? 2018-03-24T08:25:24+00:00

Once VAT registered, the seller will need to submit all shipping/VAT invoices on a monthly basis along  with an amazon sales report which we will provide details for your sales records.

Do VAT Direct deal with EU VAT? 2018-03-24T08:25:39+00:00

Yes. We deal with EU VAT. We may quote you depending on country.