VAT Registration & Compliance Services

Key points:
• Corporate structure – Choose the appropriate legal entity (e.g., limited company, branch, or subsidiary) to optimise tax and liability.
• PAYE and payroll obligations – Comply with UK rules on employee tax, National Insurance Contributions, and reporting.
• Local licensing and permits – Certain industries require additional regulatory approvals.
• Transfer pricing and intra-group services – Document intercompany transactions to meet HMRC rules.
• Reporting and deadlines – Keep up with corporation tax, VAT, CIS, and payroll filings to avoid penalties.

Foreign-owned companies should also plan for cross-border tax, currency considerations, and local business practices to ensure smooth UK operations and regulatory compliance.

Key points:
• Commercial invoice and packing list – Details of the goods, quantities, and value.
• EORI number – Required for all businesses importing into the UK.
• Proof of origin documentation – Such as supplier declarations or movement certificates to demonstrate preferential status.
• Customs declarations – Submitted electronically via the Customs Declaration Service (CDS) or through a licensed customs agent.
• Licences or permits – Required for controlled goods (e.g., chemicals, agricultural products, or medical devices).

Foreign-owned companies importing into the UK should ensure all documentation is accurate and compliant to avoid delays, penalties, or loss of preferential tariff benefits.

Key points:
• You must register for a UK VAT number if your taxable turnover exceeds £90,000 in a 12-month rolling period.
• Registration is also required if you import goods into the UK or supply taxable services to UK customers, regardless of turnover.
• Voluntary registration is possible for businesses below the threshold, which allows them to reclaim input VAT.
• Non-compliance can result in penalties, interest, and restrictions on reclaiming VAT.

Foreign-owned companies operating in the UK must assess whether their activities trigger VAT registration and ensure timely registration with HM Revenue & Customs (HMRC).

Key points:
• Customs duty depends on the type of goods and their Harmonised System (HS) code, with rates set by HMRC.
• Import VAT is charged on the total value of the goods, including shipping, insurance, and any applicable duty.
• Additional fees may include excise duties or inspection charges for specific goods.
• Businesses can estimate costs using the UK Trade Tariff tool or consult HMRC guidance before importing.

Foreign-owned companies should calculate all import costs in advance to ensure pricing, cash flow, and compliance with UK import regulations.

Key points:
• In the UK, VAT-registered businesses must file online VAT returns to HM Revenue & Customs (HMRC), usually quarterly, via the Making Tax Digital (MTD) system.
• In the Netherlands, businesses submit BTW returns to the Dutch Tax and Customs Administration, typically monthly or quarterly, depending on turnover and business size.
• Returns detail sales, purchases, VAT charged, and VAT reclaimed, and payments are made at the same time as filing.
• Penalties may apply for late or inaccurate filing in either jurisdiction.

Foreign-owned companies operating in both countries must maintain accurate cross-border records and comply with each country’s rules to avoid double taxation or penalties.

Key points:
• The standard VAT rate is 20%, with reduced rates of 5% for certain goods/services and 0% for others.
• Businesses must register if their taxable turnover exceeds £90,000 in a 12-month rolling period.
• VAT-registered businesses charge VAT on sales and reclaim VAT on eligible purchases through VAT returns.
• Non-registered businesses do not pay VAT on sales but cannot reclaim input VAT on purchases.

Foreign companies importing goods into the UK or supplying taxable services may also be required to charge and pay VAT, regardless of turnover, depending on the type of trade and import/export arrangements.

Key points:

• You must register within 30 days of exceeding the threshold.
• The threshold applies to both UK and foreign-owned businesses making taxable supplies in the UK.
• Voluntary registration is possible for businesses below the threshold, which allows them to reclaim input VAT on expenses.

Foreign companies importing goods into the UK or supplying taxable services may also be required to register regardless of turnover, depending on the type of trade.

Key points:

• Non-UK businesses can use the VAT refund scheme if they incur VAT on goods or services used in their UK business activities.
• Claims must be submitted within six months of the end of the relevant calendar year.
• The expenses must be directly related to business activities and properly documented with VAT invoices.

Foreign-owned companies registered for UK VAT can reclaim input VAT directly on their VAT returns, offsetting it against output VAT charged to customers.

Other VAT rates include:

• Reduced rate – 5%: Certain energy-saving materials, home energy, and some children’s car seats.
• Zero rate – 0%: Most food, children’s clothing, books, newspapers, and exports.

Foreign-owned companies supplying goods or services in the UK must apply the correct VAT rate, charge VAT on sales, and submit VAT returns to HMRC. Incorrect rates can lead to penalties or repayment obligations.

Steps to register:

1. Set up a UK business entity – Limited company or branch.
2. Create a Government Gateway account – Required for online registration.
3. Complete the VAT registration form (VAT1) – Include details of turnover, business activity, and bank account.
4. Receive a VAT registration number – HMRC will confirm your VAT number and effective date.

After registration, you must charge VAT on eligible sales, submit VAT returns, and keep proper records. Voluntary registration is also possible for companies below the threshold to reclaim input VAT.

Foreign companies must register if they:

• Exceed the £90,000 UK taxable turnover threshold within a 12-month period.
• Import goods into the UK or sell goods held in the UK.
• Provide digital or other taxable services to UK consumers.

Even if below the threshold, voluntary registration is possible to reclaim input VAT. Foreign businesses must also consider reverse charge rules and cross-border VAT compliance when trading with the UK.