Recently, a lot of enterprises report difficulties in registration to VAT in Great Britain. This problem especially affects the EU companies. Registration processes became more complex and long. Registration, especially for companies in the e-commerce sector, can take up to 6 months.

The British HMRC claims that the processing of VAT registration takes about 40 business days. However, after the UK left the EU, many companies from outside the UK stood in the face of a more complex reality, and matters regarding VAT registration lasted up to half a year and led to numerous conversations on this subject. This process is especially difficult for companies providing online services, sales services, where the threshold for registration to VAT is 0.00 GBP. Unfortunately it is not easy to communicate with the Tax Office in Great Britain to undergo the registration process.

What recommendations can be given to companies that go through this process?

The most effective way to finalize VAT registration for companies based in the EU, which provide services provided electronically, is to reach HMRC right after submitting a VAT application. It may be beneficial to make contact and provide a full description of business activity, attaching additional data confirming sales on the British market, such as:

• Evidence of all configuration costs;
• Website hosting costs;
• Accounting costs;
• Examples of sales to customers in Great Britain.

Proactive supply of this information may prevent rejection of applications and a long communication with HMRC.

For further information, do not hesitate and contact us.