- HMRC is targeting virtual e-commerce companies to ensure they comply with VAT registration obligations.
- Over 10,000 businesses are being approached that should be VAT registered but are not.
- Foreign e-commerce low-value item importers are required to VAT register from their first sale to UK consumers.
- Some foreign sellers have formed UK virtual companies to avoid VAT registration.
- Non-Established Taxable Persons (NETP) rules require foreign businesses with UK subsidiaries to meet certain criteria for VAT registration.
- Virtual offices or accountants’ offices are not suitable for VAT establishment according to HMRC.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United Kingdom"
- Understanding VAT Obligations and Reliefs for Charities in the UK
- Guide to Claiming VAT and Import Duty Repayments: Eligibility, Process, and Requirements
- AI in Tax: Balancing Innovation and Risks in a Rapidly Evolving Landscape
- Deos Group.co.uk Ltd Wins Appeal Against HMRC on VAT Input Tax Disallowance and Penalty
- Colchester Institute Corporation v HMRC: VAT on Government Grants for Free Education Services
