UK value-added tax (vat) refers to the tax levied on consumers on behalf of the tax bureau when businesses sell goods or services in the UK, or import goods from abroad to the UK. All businesses that use overseas warehouses and FBA on platforms (such as eBay, Amazon, etc.) are required to pay VAT taxes. But as long as the product is sold in the UK and the transaction is completed, VAT tax needs to be paid. So, let’s learn how to declare VAT in the UK?
1. Materials required for declaration.
1. Purchase documents, including import VAT documents, C79 documents or bills provided by logistics companies, etc.
2. Sales documents, that is, invoices, sales data or monthly bank notes provided to customers.
3. Purchase information, product purchase documents, etc.
4. Other expense documents, such as expense documents generated in the UK, etc.
2. Specific steps for declaration.
1. Fill in the declaration form.
Enterprises need to fill in a declaration form, which includes the following content.
1) The quantity of goods sold according to VAT number during the reporting period.
2) Sales value-added tax.
3) The import amount of this purchase.
4) This import purchase includes value-added tax.
2. Provide supporting documents.
1) Proof of sales amount, that is, all sales invoices or all current sales data downloaded from the e-commerce platform.
2) The VAT certificate included in the purchase amount includes invoices and import customs declaration tax documents. The invoice must include the merchant’s VAT number information.
3. Submit application materials.
Enterprises need to submit declaration forms and supporting documents within 8 days after the expiration of each declaration period. After completing registration, they need to pay attention to the email from the tax bureau and check the registration email address. Generally speaking, online registration takes about 6 weeks. can be completed. After completing the registration, you can start to declare UK VAT taxes by yourself according to the above process.
The above introduces the relevant knowledge about how to declare VAT in the UK. In the UK, no matter which method you choose to declare, you need to ensure that your declaration is accurate and pay the tax due on time to avoid Risk of Penalties and Interest. In short, reporting VAT is necessary to run a business in the UK. It is recommended that you carefully understand the relevant regulations and reporting process, and seek the help of a professional accountant/tax advisor to ensure that you comply with all regulations and manage your VAT affairs well.