vatmate and Tax Compliance
VAT is a tax charged on most business-to-business and business-to-consumer transactions in the UK. You must register for VAT if your turnover in any 12 month period is over a specific limit – this limit is normally increased annually in the Chancellor’s Budget – or if you think your turnover may soon go over this limit. You may register voluntarily at any time.
Once registered for VAT, you need to fill in and submit regular VAT returns online, and pay any VAT due electronically. All VAT registered businesses must submit their returns online and pay electronically any VAT that is due.
A supply of goods or services from one country to another will be subject to one of a number of different sets of VAT rules.
Place of supply
The place where a supply takes place for VAT purposes is important because only supplies taking place in the UK are within the scope of UK VAT. Taxable supplies taking place outside the UK may be subject to VAT in another EU country, or outside the scope of VAT altogether.
In the case of cross-border supplies of goods into the UK, VAT may be payable even if the supply takes place outside the UK under the rules for imports and acquisitions.
We've got your back
If you’re supplying goods or digitally delivered services, you need to understand VAT and the rules around VAT on eCommerce.
You track every transaction and keep good records.
But ...
How do you know what VAT rate to charge on every item, on every sale?
How do you identify the relevant tax authority?
Or prove that your business complies with the law?
For example, how do you 'prove' that your business customer is actually a business? In ordinary, day-to-day sales you'll have a note of a conversation, possibly a purchase order and, at least, a transaction in your bank account or Merchant account that will match up. But if the whole transaction takes place online ... ? If the business 'customer' is located in a different country from you? Also, could you demonstrate that all transactions have, without doubt, taken place?
vatmate® provides you with the positive answers to all these questions and more.vatmate® is designed to ensure that your business can comply fully with the complex and challenging VAT rules about selling online.