Do I need a VAT number to sell to the UK?

If you are an overseas seller who owns goods of any value that are located in the UK at the point of sale you must register and account for VAT on any sales you make directly to customers in Great Britain or Northern Ireland. There are different rules if you import goods then sell them through an online marketplace.

Do I need a VAT number to ship to UK?

#1 Register for VAT and Collect VAT Fees: As a U.S. online retailer, you will now be required to register for a VAT number and create an online account from HM Revenue and Customs (HMRC) in order to deliver e-commerce orders into the UK.

Do I charge VAT to UK customers?

Selling goods to private consumers (B2C) outside the EU

You do not need to charge VAT if you sell goods to private consumers outside the EU, including Great Britain.

Do I need a VAT number to import goods?

In general terms, VAT is payable on all imports at the same rate that would apply to the product or service in the UK. You do not have to register for VAT to import goods, but obviously if you do not register you will not be able to claim back any VAT you pay.

What happens if I don't have a VAT number?

Individuals or organizations without a VAT number ordering from within the European Union will have to pay 21% VAT. We advise you to check with your administrative or financial department about having a VAT number before placing your order. If you are outside the EU, you do not need a VAT number.

How to Get a VAT Number Step by Step (2022) for Selling in the UK | SaleYee.com

Can I sell something without VAT?

Usually if you have been charged VAT on the original purchase of the equipment then you'll have to charge VAT on any subsequent sale. If you're selling second hand equipment you bought previously, then no VAT is charged on the sale. However, VAT will be due on the margin if you sell it at a profit.

Can you operate without a VAT number?

If a business has not registered for VAT, it will have no VAT number or requirement to include this on the invoice. While any business can choose to register for VAT, it's only compulsory if your business has an annual turnover of £85,000 or higher.

How do I know if I need a VAT number?

In all the following instances, you will need a VAT number: A company based in the EU that carries out supply of goods taxed with VAT. A foreign company that buys and sells goods in the EU. A company that imports goods into an EU country, including cross-border transportations within the EU.

Is it illegal to charge VAT without a VAT number?

Legally, you're not permitted to charge VAT to customers before you've registered for VAT. The penalty for charging VAT when not registered can be up to 100 percent of the VAT on the invoice. There's also a minimum penalty of 10 percent for charging VAT ahead of schedule.

Can I charge VAT without a VAT number?

Firstly, it is worth noting that you must not charge VAT if your business is not registered for VAT. However, VAT-registered businesses must charge VAT on their taxable supplies of goods and services and can reclaim the VAT they have paid that relates to the supplies on which they have charged VAT.

Do you pay VAT on the first 85000?

As of my last knowledge update in September 2021, this threshold stands at £85,000. This means that if your business's taxable turnover surpasses £85,000 over a 12-month period, you are obligated to register for VAT with HM Revenue and Customs (HMRC).

What is the VAT rule in the UK?

Value-added tax (VAT) The standard VAT rate of 20% applies to most goods and services, apart from domestic fuel and power and certain other reduced-rate supplies, which are subject to VAT at 5%.

How can I avoid paying VAT?

Disaggregation is when business owners seek to avoid charging VAT by splitting their business into different parts to ensure each operates under the VAT registration threshold. For a limited company, some business owners may look to establish separate companies. A sole trader may seek to establish separate trades.

Who is exempt from VAT in UK?

VAT Exempt or out-of-scope goods and services

Education and training from eligible schools, colleges, or universities. Charity donations and events. Health services. Insurance, financial services, and investment.

Who needs a VAT number UK?

If you're a sole trader and your annual turnover is over the £85,000 threshold, then you'll need to register your self-employed business for VAT. The VAT threshold applies regardless of your business structure.

Do I need a VAT number for dropshipping UK?

Do you have to pay VAT on dropshipping? As a dropshipper, the Company selling to the final customer (B2C) always has to charge VAT on that supply. This is why, either a VAT registration in the country of the final customer or an OSS registration will normally be required.

Is it worth registering for VAT?

Benefits of registering for VAT

If you register for VAT, you will reclaim VAT on all the goods and services you purchase. Input tax refers to the tax you pay on goods and services, whereas VAT is the output tax you charge. If your input is higher than your output, you will be able to claim it back through the HMRC.

How long does it take to get a VAT number UK?

The VAT registration process typically takes 30 - 40 days, although it can often take longer. Once complete you will receive your VAT Registration Number and Certificate of VAT Registration.

Is it illegal not to provide a VAT invoice?

There's no legal obligation to provide an invoice unless both you and your customer are VAT registered.

How much does it cost to get a VAT number?

There is no VAT registration cost – the whole process of registering for VAT on the HMRC website is free. However, when it comes to filing your VAT return, there are optional ways of doing it that can add to your costs.

How do I get my own VAT number?

The easiest way to get a UK VAT number is to apply online on HMRC's website. You will need to create a VAT online account, which is often referred to as a “Government Gateway Account”. This is the account you will also use to submit your company's VAT returns to HMRC later.

What is an example of a VAT number in the UK?

VAT number format

In England, Scotland, and Wales, a VAT number consists of the letters 'GB' followed by nine numbers. An example of a VRN that follows the UK VAT number format could be 'GB123456789'. If your business is located in Northern Ireland and you trade to the EU, you will use the prefix “XI” instead of GB.

Do I need a VAT number if I am a sole trader?

Some sole traders mistakenly believe that only limited businesses or large corporations must be VAT-registered. The truth is that both limited businesses and sole traders alike are just as liable for VAT registration because it is based on your 12-month turnover, not business structure.

Can I sell online without VAT?

The short answer to this question is: yes, you can sell on Amazon if your business isn't VAT registered.

Do I need a VAT number if I'm self employed?

As a self employed person you are essentially your own business owner and as such need to have an account with HMRC. Once you hit the threshold specified above (£85,000 per year) you need to register for VAT. This must be done within thirty days of the end of the month that you reached that amount of earnings.