Offshore company operating in the UK

[ArabianNights]

Exploring the opportunity of setting up an offshore company, but operating in the UK. I have a side hustle whilst is on a sole trader basis but soon will be hitting the threshold for VAT registration, which means that it would be best to incorporate and then register for VAT. For various reasons, instead of going down the normal company registration corporation route and also no longer being based in the UK, I’m thinking of setting up a company offshore and then trading in the UK through that.

Basic things I need clarification on:

1. Can an offshore company register for VAT?

2. If and when there is a VAT repayment due, can that be sent from HMRC to a foreign bank account?

This is an e-commerce venture, which has UK based suppliers and also sell on eBay, all to UK only based customers. Thanks!

 

[Deleted member 351022]

1. Can an offshore company register for VAT?

2. If and when there is a VAT repayment due, can that be sent from HMRC to a foreign bank account?

This is an e-commerce venture, which has UK based suppliers and also sell on eBay, all to UK only based customers. Thanks!

1. Yes, you would register as a NETP - non established taxable person . A NETP is registered at the HMRC offices in Aberdeen. The VAT registration threshold does not apply to NETP so as an overseas business you would have to register if you hold any stock or make taxable sales in GB. It’s applicable to any business either sole trader or incorporated.

2 I believe this is possible.

 

[ArabianNights]

1. Yes, you would register as a NETP - non established taxable person . A NETP is registered at the HMRC offices in Aberdeen. The VAT registration threshold does not apply to NETP so as an overseas business you would have to register if you hold any stock or make taxable sales in GB. It’s applicable to any business either sole trader or incorporated.

2 I believe this is possible.

Thank you!