Non-Resident LTD Company Taxes & VAT for Drop shipping Ecommerce Store in UK.

Hi, I am not a UK resident, nor live there. I have a limited company registered in UK. I have started an Online store in UK linked with Printful which is a print on demand company that will manufacture, print, and ship products on my store's behalf. I have created a PayPal account on company name and linked with online store to collect payment from customers. When someone orders a Printful's synced products from my store I have to collect payment from customer via PayPal gateway, then pay the original product amount to Printful to manufacture and deliver to my customer. At this time I will also be paying 20% VAT to Printful. After that the profit amount is left, I withdraw from company's PayPal to my Payoneer account, which is on my name. My question is that, do I need to register for VAT in UK and charge 20% VAT to my customers. Currently my company is not registered for VAT yet, as yearly turnover is not above £ 85,000. And also do I need to register for any kind of taxes, or register with HMRC? Or do I need to fill any yearly statements or anything. If yes then please tell me everything I need to do in details. I have read a lot of articles, community forums, and saw videos, but didn't understand anything, I don't know what to do to keep my business fully legal and avoid any issues in future. So, Please don't refer me any links, please answer my questions clearly. I'll be very grateful. Best Regards,

Name removed admin 

 

Hi. If you are supplying goods in the UK and you belong in the UK then you will need to register for VAT if you breach the £85K threshold. If you are supplying goods in the UK and you belong overseas then you will need to register if you make sales of any value in the UK. As you are a company incorporated in the UK then as long as long as you're able to receive business supplies at your registered office in the UK then you belong in the UK for VAT purposes and so you would not need to register for VAT until you meet the £85 threshold. The arrangements that marketplaces/platforms have with their customers(your company) are varied. However if Printful are charging you VAT then I'm assuming that they are supplying you with goods in the UK which you are then supplying on to the end customer. As the supply of goods are being made by your company to your end customer then these will be UK supplies and so there will be a requirement for you to register for VAT immediately if you are classed as a Non Established UK business,or after the £85K is reached if you belong in the UK. Please see the link below as it is important to ascertain whether you belong in the UK or are a Non Established business: Who should register for VAT (VAT Notice 700/1)  . Thank you .