VAT registration required? UK PVT LTD Co, but director and shareholder are non resident

Countries

Read only
Australia
Belgium
Brazil
Canada
Egypt
France
Germany
India
Italy
Japan
Mexico
Netherlands
Poland
Saudi Arabia
Singapore
Spain
Sweden
Turkey
United Arab Emirates
United Kingdom
United States
United Kingdom
imgSign in
Country changed
user profile
Seller_Rq52MhSdqGrHF

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

79 views
8 replies
Tags:Registration
00
Reply
8 replies
user profile
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.

https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat/vat-notice-7001-should-i-be-registered-for-vat#non-established-taxable-persons-netps-basic-information

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.

00
user profile
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?

00
user profile
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

00
Follow this discussion to be notified of new activity