Since last year, we all know that the British tax authorities have strengthened the scrutiny of VAT registration, and since then it is very difficult to place a VAT number in the UK. According to the seller's consultation revealed that the time limit is 3-6 months, or even longer. UK VAT under the number of problems, consistent as many sellers hesitate to sea plan "headache", more sellers first open FBA warehouse, goods have been sent out, the UK VAT tax number has not been under the number and lead to the store was closed.
(Source: Know Nothing Cross-border E-commerce Community)
The Green Circle editorial board would like to remind everyone that UK VAT tax compliance must pay attention to the following points:
1
When will I trigger the VAT obligation in the UK (Chinese Seller)
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Use of stock within the UK (e.g. FBA warehousing or overseas warehousing)
You have 90 days from the time you have stock* in the UK to upload your UK VAT number or Amazon will suspend your UK account. If you are able to provide Amazon with 3 supporting documents, you will be given an additional 30 days grace period (total of 90+30 for 120 days). For more information on the documents, please click on the customer service QR code below.
In the initial stage of registering a UK VAT number, it is recommended to prepare the basic application documents and supplementary documents at the same time:
Additional information that may be requested by HMRC includes, but is not limited to: purchase invoices, transportation contracts, screenshots of FBA shipment pages, screenshots of warehouse information, sales reports, etc.
2
Receive UK VAT and EORI numbers before shipping.
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Don't open UK FBA warehouse for shipment without UK VAT number (when there is no guarantee that the number will be issued within the grace period), if the VAT number is not uploaded within 90+30 days from the date of stock availability, your account will be suspended from sales. It is recommended to plan your VAT application in advance and start shipping after receiving your VAT and EORI numbers.
Green Circle Accounting Firm (Green Circle) is a reliable and time-efficient way to place an order.
As a local accounting firm in the United Kingdom, Green Circle has a mature VAT registration process, and accurately grasps the policies of the United Kingdom Inland Revenue and interprets them for clients. Since the emergence of VAT number in the United Kingdom, it is difficult to register a long time, Green Circle has always maintained a faster and more stable time in the industry, the entire registration process from the submission of the application, preparation of materials, materials, questionnaire response to the final VAT tax number is only in 2-3 months time!
Sellers who need to register UK VAT are welcome to consult Green Circle.
3
Be sure to file a compliant tax return
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HMRC imposes fines for late filing and late payment of tax, and there is a risk of an audit, which could lead to closure of the store.
Note: Currently, UK/EU Value Added Tax (VAT) is paid on a withholding basis. During the tax calculation process, there may be tax that has not been withheld and you need to pay it in time. You can also apply for a refund if you have overpaid tax or import VAT.
4
Penalty regime for VAT in the UK in 2023
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From January 1, 2023, HMRC, the UK's tax authority, began implementing new VAT late penalty rules. Any late submission of VAT returns or late payment of VAT will be subject to penalties and interest in accordance with the new rules.
Penalty for late filing of VAT returns
Under the new rules, for VAT return cycles beginning to run after January 1, 2023, HMRC will adopt a points-based penalty system for late filing of VAT returns by businesses and individuals.
There are different penalty threshold scores for different VAT filing cycles, see table below:
Once you reach the penalty point threshold, you will be penalized £200. And remember, every time you are late thereafter, you will be fined a further £200 unless your penalty points are reset to zero.
Penalty for late payment of VAT
The penalty rate that applies for late payment of VAT depends on when you pay the VAT. The penalties are calculated as follows:
In addition to the late payment penalty, late payment interest will also accrue, which is calculated at the Bank of England base rate plus 2.5%.HMRC has also given a transitional period from 1 January 2023 to 31 December 2023, during which taxpayers will be liable for the late payment penalty. During this period, if the taxpayer is in the first 30 days after the deadline.
Green Circle Accounting Firm is an Amazon SPN service provider, eBay Golden Eagle program VAT recommended service providers, providing European VAT, Middle East VAT, Canada GST, Mexico RFC, Japan JCT, Europe EPR, energy efficiency labels, trademark registration and a full range of professional services, there is a need for seller friends can contact the green circle of the sales lady.
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