An in-depth interpretation of UK VAT tax compliance：Registration conditions、Reporting Methods and Tax Rate Policy Issue

UK VAT tax compliance：The focus of nearly 100,000 sellers

March 15 this year，UK Finance Bill comes into force。This bill has a particularly far-reaching impact on individuals or companies engaged in foreign trade e-commerce business in China - the British IRS has gained greater authority，Failure to register for VAT as required、Cross-border e-commerce sellers who fail to complete tax declarations on time will be strictly dealt with。

in fact，Back in 2012，European countries have already introduced tax policies for cross-border e-commerce companies.，However, it was not fully implemented at that time。now，VAT tax ID related policies have all come into effect，and are strictly implemented by tax bureaus of various countries.，This has caused many platform sellers to feel anxious。current，A large number of Amazon sellers are facing account bans、fine、Fund freezing and other difficulties。

The core reasons for the British VAT tax problem

1. The VAT tax number of the corresponding country has not been uploaded.；
2. The uploaded VAT tax number information is inconsistent with the background information such as Amazon；
3. The tax bureau audit found that the seller failed to pay taxes as required；
4. Failure to make regular declarations as required by the country。

There seem to be many problems，But they are all closely related to VAT。Due to differences in VAT tax policies across countries (such as tax rates、The number of declarations varies)，If the seller does not understand the policy or fails to declare as required，will result in the account being blocked.、Freeze or cancel entry qualifications。Last week we explained German VAT in detail，Today’s focus is on the core issues of British VAT。

one、Which sellers need to apply for a British VAT tax number?

Non-UK sellers，Just store the goods in the UK、Using overseas warehouses or FBA (Amazon Logistics)，All are required to apply for a British VAT tax number。

two、Information required to apply for a British VAT tax number

1. Company or self-employed business license；
2. Provide at least ID card、passport、Two items from your driver’s license；
3. Proof of legal person’s name and address (select one)：Water, electricity and coal VAT invoice、Real estate certificate、House rental contract；
4. Basic business information；
5. Screenshot of Amazon backend (including company name and business address)。

three、UK VAT declaration time and frequency

UK VAT returns quarterly。After successful registration of VAT tax number，Report every three months，Declared a total of 4 times a year。

Four、Three ways to declare VAT in the UK

1. 0declare：If all goods are not shipped through the UK station，And there is no sales record in the Amazon backend，Can apply for 0 declarations。Notice：Once there is a sales record (even if it is only 1 euro)，Must also declare as required。
2. Low tax rate declaration：The seller’s annual sales in the UK are less than 230,000 pounds，Can apply for low tax rate，The tax rate is 7.5%。
3. Normal tax rate declaration：The seller’s annual sales via UK site exceeds £230,000，Must declare at the normal tax rate of 20%，on a quarterly basis。

five、UK VAT tax number registration process

1. Consult or place an order at Hong Kong Xintong Mall (select VAT tax number registration or registration + declaration package)；
2. A specialist from Hong Kong Xintong Overseas Enterprise Service Center will return your call within 5 minutes，Understand the specific situation of customers；
3. The customer will submit the information required to register for British VAT to Hong Kong Information Communication (if the platform account is an old account，Tax must be paid first)；
4. Hong Kong Xintong Overseas Enterprise Service Center connects with British tax partners，Apply for VAT tax number；
5. Get VAT number quickly；
6. Complete VAT tax number registration，Or entrust Hong Kong Xintong·Zhonghaina Accounting Firm to make quarterly VAT declarations。

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