UK VAT Registration – Overseas businesses

An overseas business is required to register for VAT in the UK if it is making any taxable supplies in the UK, regardless of turnover.

Unlike UK businesses, there is no registration threshold for overseas businesses. If an overseas business is making any taxable supplies in the UK then it must register for VAT immediately.

Examples of when an overseas business must register for UK VAT include:

• Importing goods into the UK for resale
• Selling goods from a stock held in the UK
• Making supplies of services relating to land in the UK
• Distance selling goods to UK customers above the distance selling threshold

The process for registering for VAT is broadly the same for overseas businesses as it is for UK businesses. An application needs to be made to HMRC providing details of the business activities, expected turnover, and other relevant information.

HMRC may require additional information from overseas businesses to verify that the business is legitimate before approving a VAT registration. This could include:

• Certificate of VAT registration from home country
• Proof of business incorporation/registration
• Copies of directors’ passports
• Contracts/agreements for UK operations

Once registered, the overseas business will be subject to the same VAT rules and obligations as a UK business. This includes accounting for VAT on supplies made in the UK, submitting periodic VAT returns, and maintaining VAT records.

Shorts is a leading UK VAT consultancy that can assist overseas businesses with all aspects of VAT registration and compliance in the UK. We have extensive experience advising overseas clients on their UK VAT obligations across a wide range of sectors.

Contact us to discuss your UK VAT requirements.