Tax Representative to Choose When You Must VAT Register UK?

The exit of the United Kingdom from the European Union entailed many new rules and requirements for many companies cooperating with Britain. Many EU companies that do business with the must VAT register the UK. Some of them are required to have a tax representative or agent. Let’s take a closer look at this issue. But first things first.

Now companies that export products or services to the United Kingdom and have a turnover of more than £85,000 must register for VAT. VAT is an additional tax charge at each point of product or service sale. Moreover, if a company expects that its turnover will exceed this threshold within the next year, it must also VAT register UK. This is especially true for those who expect to exceed the threshold within the next month. At the same time, UK companies that supply their products or services to other countries are also subject to this tax.

Companies can register in two ways: the old-fashioned way by post or using a special online form. However, HMRC still encourages online registration since it makes searching for information about organizations much easier.

Companies from some countries may be required to appoint a special tax representative. He will VAT register UK, keep records and submit VAT returns on time. He will also be responsible for VAT debts. You should check if you need a dedicated representative for this. However, foreign non-EU companies most often do not need a representative to register for VAT.

Some companies are allowed to appoint an agent instead of a tax representative. His duties are the same as those of the tax representative, but he will not be responsible for VAT debts. EU and non-EU companies can register as VAT payers in the UK and not have a local fiscal representative. As for the UK companies, this requirement does not apply to them. However, if they want, they can also have their own fiscal representative or agent.

If you are required or want to appoint a representative or agent, then the best option is, of course, a local agent. It can be both a legal entity and an individual in the country where you need him. The local agents’ advantage is that they already know all the details in their country. That is, requirements such as format, the payment structure for each supplier, and administrative work will be already familiar to them.