VAT registration required? UK PVT LTD Co, but director and shareholder are non resident
Hi All,
I have a UK PVT LTD Company with the director / shareholder based out of India. Intention is to import goods to sell from India as well. First year sales are expected to be below 85000£.
Do I need to register for what? As per the criteria on HMRC website
VAT registration required? UK PVT LTD Co, but director and shareholder are non resident
Hi All,
I have a UK PVT LTD Company with the director / shareholder based out of India. Intention is to import goods to sell from India as well. First year sales are expected to be below 85000£.
Do I need to register for what? As per the criteria on HMRC website
8 replies
Seller_qZO3ZCjoBXEeL
Yes, based on what you have described you (and your company) would be a NETP - non-established taxable person. As such you are classed an an overseas seller and storing goods in the UK would make you immediately liable to register for VAT with zero threshold.
8.1 NETP – definition
A non-established taxable person (NETP) is any person who is not normally resident in the UK, does not have a UK establishment and, in the case of a company, is not incorporated in the UK.
8.2 UK establishment: definition
A UK establishment exists if either the:
> * place where essential management decisions are made and the business’s central administration is carried out is in the UK
> * business has a permanent physical presence with the human and technical resources to make or receive taxable supplies in the UK
We would normally consider a company which is incorporated in the UK to have an establishment in the UK as long as it’s able to receive business supplies at its registered office.
Since you would not qualify as a UK established business by the above criteria you would be NETP and therefore liable for VAT registration immediately.
Seller_Rq52MhSdqGrHF
Dear Peter, Thank you for the kind response and the link. Very insightful.
Looking at point 8.1 it says in case of a company if not registered in the UK. Given that mine is a company registered in the UK is this still considered an NETP?
Seller_Rq52MhSdqGrHF
Thank you Shewsbury. Can you guide me to the place where this is mentioned or any other resource which makes it clear. As I have been getting different advise on this point
