UK VAT Registration for online businesses

HMRC’s more rigorous approach to company’s that need UK VAT Registration for online businesses set a precedent earlier this month (1 August 2017) with eBay resulting in customers no longer contracting with eBay Europe in Luxembourg, but now trading with eBay (UK) Ltd.

This meant for the customers of eBay (UK) Ltd, that VAT will start showing on eBay invoices which are issued after 1 August 2017. Presumably this is the effective date of registration of eBay (UK) Ltd. with HMRC for VAT.

Those company’s that are VAT registered with HMRC should be able to reclaim the VAT through their returns with HMRC.

We are frequently asked what is involved for registering an online business for UK VAT with HMRC.

Generally speaking, the following information is required to register for UK VAT with HMRC:

  • Company details, name of the business, registration number, date of incorporation and full contact details
  • Brief description of the business
  • Director details and whether any have been involved with another UK company or Isle of Man.
  • Bank details
  • Date registration commences
  • Anticipated turnover for the upcoming 12 months including:
    • Sales to other UK entities
    • Sales to EU entities
    • Sales outside to the rest of the world
  • Value of purchases to other UK entities over the next 12 months
  • Estimation if purchasing goods from other EU member states over the next 12 months if applicable.

HMRC will either grant the VAT registration swiftly, or they may ask for further documentary evidence of your current and intended trading in the UK/Europe. How long does it take to register for UK VAT?

We explore simply what UK VAT is, and when you should register for VAT here.

For further information, the HMRC website has further detail.

We can handle the application process and returns thereafter on behalf of our clients behalf with HMRC and register for UK VAT for your online business. For further information, please get in touch.