The VAT declaration methods in the UK include zero declaration and normal declaration. Zero declaration can only be made when there is no sales within a quarter. Normal declaration is divided into STN standard tax rate declaration and FRS low tax rate declaration. So, let’s learn about British VAT together. Quarterly reporting process and methods.
1. Conditions for the British VAT quarterly reporting procedure.
The tax rate declared by STN is 16.7%, which is the total sales divided by 6. If it is a terminal seller, it can record and declare the tax payable based on the sales of each quarter. FRS declaration is applicable to small sellers whose annual sales do not exceed 150,000 pounds. They can enjoy low tax rate declaration. The import tax declared at low tax rate is not refundable or deductible.
2. Three conditions for declaring a low tax rate of 7.5%.
1. Imported products must be shipped to the UK in that quarter, and a VAT tax number needs to be used for import customs clearance.
2. The import tax on imported products in the current quarter should be greater than 41.67 pounds.
3. The declared value and total import tax of imported products in the current quarter should be greater than (or equal to) 2% of the sales volume.
3. Material preparation for the British VAT quarterly declaration process.
1. Input invoices, including import VAT tax bills and C79 documents or logistics company bills, etc.
2. Output files, including bills sent to customers, Paypal sales data or bank monthly statements, etc.
3. Procurement and sales data, goods procurement documents.
4. Other fee invoices, that is, fee invoices generated locally in the UK.
4. C79 document of British VAT quarterly reporting procedure.
The calculation and collection of VAT tax rebates/deductions in the UK are closely related to the C79 document. C79 occurs when the goods are imported to the customs. It is the total VAT of the import link for the month. The recorded amount is the total VAT of the import link for the month.
5. Explanation of the British VAT quarterly declaration process time.
British VAT is declared every quarter. The quarterly calculation time is not based on the quarter of the natural year, but can be selected when registering the VAT number. Generally speaking, the first VAT quarter is about 2 to 3 months.
The above introduces the relevant knowledge about the British VAT quarterly declaration process and method. The British VAT applies to imports, commercial transactions and service activities generated in the UK. The VAT tax number also applies to products stored overseas. For sellers who ship goods and complete transactions from the UK, if the products are warehoused and shipped in the UK, they will be subject to the UK VAT value-added tax.