VAT and Storeship Fulfilment House

VAT and Online Resellers

VAT and Fulfilment

V.A.T. means Value Added Tax. It’s a tax that VAT-registered traders in the EU add to the price of the goods they sell and pass on to the national tax authorities when they file their tax returns. You may need to be registered for VAT to be able to sell goods within the UK. In fact if you sell goods in an EU country, it’s likely you may be required to register for Value Added Tax (VAT) in each country you sell in.

Remember: it’s the responsibility of each Storeship seller to ensure they are VAT-compliant and you should seek professional advice if you are unsure of your obligations.

Take this simple test to see if you need to register for VAT https://litmustest.kpmg-vat-compliance.com/

Where is your business established?

In the UK
You need to register for VAT in the UK if:

  • You store goods in the UK; and
  • You sell them to consumers based in the UK; and
  • Your sales exceed the UK domestic VAT threshold of £85,000.

You may also need to register for VAT separately in other EU countries if:

  • You sell goods to consumers in other EU countries.

In a different EU Country
You need to register for VAT in the UK if:

  • You store your goods in the UK or
  • You sell to UK-based consumers (non-business); and
  • Your sales exceed the UK distance selling VAT threshold of £70,000.

Outside the EU
You need to register for VAT in the UK if:

  • You sell goods that you store in the UK to customers based in the EU.

You may also need to register for VAT separately in other EU countries if:

  • You sell goods to consumers in other EU countries.

How do you register for VAT?

Firstly, you’ll need to establish if you need to register for VAT. If you need to register you’ll have to submit an application form to the H.M.R.C. (Her Majesty’s Revenue and Customs) When you have completed the VAT registration process you will be given your VAT number. You will need your VAT number to;

  • File your VAT Tax Return
  • Issue VAT Invoices, remember to add 20% to your goods.
  • Claim money back on your business expenses.

Please ensure that you are VAT compliant.

Get in touch if we can be of more assistance.

If you've enjoyed reading this, please share it:

Leave a Reply

Your email address will not be published. Required fields are marked *