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Country Profiles

Country flagUnited Kingdom (VAT)

United Kingdom being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.

Standard VAT Rate: 20%

Reduced VAT Rate: 5%

Registration Threshold Distance Selling: 70,000 GBP

EU VAT number format: GB999 9999 99 or GB999 9999 99 9995 or GBGD9996 or GBHA999

 

VAT Registration

To apply for VAT registration, businesses must complete a VAT registration application form within 30 days of the month in which the liability to register arose. If you make taxable supplies this will be Form VAT 1.

 

VAT Compliance

Detail rules regulate reporting requirements of UK transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes.

 

VAT Returns

In general returns are made quarterly, but those businesses that regularly reclaim VAT can opt to make monthly returns.

  • Annual returns are only allowed for very small businesses
  • Special return periods can be agreed with HMRC
  • The time limit for filing the VAT return is 1 month  

 

Intrastat and EC Sales Lists

The Intrastat discloses details of movements of goods between Member States which take place for commercial reasons, recording the movement whenever goods enter the territory of United Kingdom from other Member States or leave it to other Member States. Declaration must be filed monthly once the annual threshold is exceeded.

Intrastat declarations can be submitted in paper format. The due date for submission is the end of the month following the reference period. E.g. for the January period, declarations must be submitted by the end of February. For businesses with an agreed, non-standard VAT period, the time limit operates from the end of the special period.