VAT thingies (UK laws)

[stormbind]

Hi,

I had a minor disagreement today, and to resolve the matter satisfactorily requires me to know without any doubt, that a business can have only one VAT number, or many VAT numbers. Which is it?

Thanks everyone

 

[Illustrious]

Any trading entity (an individual, a partnership or a limited company) is obliged to register for VAT if its total turnover from taxable supplies exceeds the relevant threshold. Once registered, it is issued with a VAT Number.

Certain things follow from this:
(1) all of an entity's supplies need to be considered for the purposes of registration - even if the entity carries out more than one trading activity
(2) as a result, a trading entity will only have one VAT registration number (which answers your question)
(3) there are regulations preventing a business from being artificially split into a number of separate entities in order to avoid registration

 

[stormbind]

Thank you, Illustrious!

 

[Commy]

I'm sorry... What is VAT?

 

[Sophie 378]

Value Added Tax, on non-essential items iirc - food is I think not VATted, but a cooked meal in a restaurant is. Normally 17.5%

 

[stormbind]

Yup, register for VAT and get 17.5% discount on everything you buy

 

[Commy]

Thanks, I've understood. In UK VAT is 17,5%? Too much I think. In Russia it is only 13%

 

[CruddyLeper]

Any trading entity (an individual, a partnership or a limited company) is obliged to register for VAT if its total turnover from taxable supplies exceeds the relevant threshold. Once registered, it is issued with a VAT Number.

Certain things follow from this:
(1) all of an entity's supplies need to be considered for the purposes of registration - even if the entity carries out more than one trading activity
(2) as a result, a trading entity will only have one VAT registration number (which answers your question)
(3) there are regulations preventing a business from being artificially split into a number of separate entities in order to avoid registration

Bear in mind that a corporate group (company that owns other companies) can have a VAT number for each company it owns. Although it can't directly trade with that VAT number, it's subunit can trade and add to the overall accounting headache.

Limited companies are not the end of it. Not by a long shot.

 

[CruddyLeper]

Thanks, I've understood. In UK VAT is 17,5%? Too much I think. In Russia it is only 13%

Is US its rarely more than 6%, or so I have been told. Varies from state to state of course.