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Posted Fri, 01 Dec 2023 02:51:56 GMT by
Hello, I’m new to this area and a lot of things are not clear to me, so I’ll ask you to help me. I'm starting to do dropshipping. I myself am a resident of Russia, the company is registered in the UK, I will sell the goods to the USA and Canada, and the supplier will be in China. This is the confusion I get and I have questions: 1. Do I have to pay tax in the UK on the profits made? 2. Do I need to register for VAT if my profit exceeds the limit?
Posted Wed, 06 Dec 2023 10:59:52 GMT by HMRC Admin 25 Response
Hi Egor,
Thank you for your query. 
Whether your company will need to pay UK corporation tax depends on where it is considered resident for tax purposes. 
A company which is resident in the UK is normally subject to corporation tax on the whole of its chargeable profits on a worldwide basis (subject to relief for double taxation).
A company which is not resident in the UK is only liable to corporation tax if it carries on a trade in the UK through a permanent establishment.
You can find guidance on comwpany residence at:
INTM120000 - Company residence: contents
You can find guidance on who should register for VAT at:
Who should register for VAT (VAT Notice 700/1)
If you need advice about the company’s residence status and tax obligations, you will need to contact a financial adviser, such as an accountant. 
Thank you. 
 

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