When it comes to the British rebate, we should first clarify the concept of what is a rebate?
In short, the tax refund is returned to the seller by the Internal Revenue Service. In fact, there are many ways to realize the tax refund and you do not know the pit.
First of all, the behavior for the tax bureau to reimburse the enterprise (seller) is called repayment. The tax bureau has a special department for managing this behavior, called repayment department. The routine work of the department is responsible for reviewing whether every tax that the tax bureau needs to refund to the seller's account conforms to the norms. Each refund must be reviewed by the department over a period of several months before it enters the refund process.
However, due to the large number of registered tax numbers of British domestic enterprises and offshore companies, the repayment department will have amazing working pressure, so the repayment department will verify the authenticity of tax refund in the form of spot check. The customers in the spot check need to provide information related to tax refund and sales to the tax bureau. If the tax bureau thinks the customer's tax refund is not standard, Not only can not get tax refund, but also may incur penalties.
Tax refund investigation, the tax bureau will ask the following questions, sellers who have tax refund requirements can plan in advance to prepare oh.
1. Purchase/transaction contract between the tax refund company and another company;
2. The transport company through which the goods are imported and delivered to the UK;
3. The overseas warehouse address of the goods in the UK;
4. Bank statement of goods transaction between the tax refund company and another company;
5. If the goods have been sold, please provide ten invoices of the goods sold
What is involved in the UK rebate? There are two kinds
First, after the tax reform, B2C orders of FBA/ overseas warehouse do not need to declare VAT (all of which are withheld and paid by the platform), but there are return orders that have been declared for sales in the last quarter.
Filing Options: Tax Authorities allow declaration adjustment for previous season tax return orders regardless of flat or standard tax rate.
Second, after the tax reform, there is an input tax to be deducted
Declaration plan: You can claim input tax deduction only under standard tax rate; flat tax rate does not allow this. You can submit your C88 and input invoices for tax deduction to your accountant for payment.
1. If the C88 (import VAT) requirement is deducted, your forwarder will be required to use your VAT and EORI for customs clearance. After customs clearance is completed, the tax agent will receive the C79 document in the middle and end of the next month. The import VAT amount of the C79 document will correspond to the import VAT of each batch of goods in the C88 document of the same month provided by the forwarder, which will be regarded as the compliance deduction document.
2. If the receipt invoice is deducted, be sure to provide a UK VAT invoice in compliance with the requirements that the seller of the invoice has been declared in compliance, and the transaction is conducted in the UK.
What about the refund process?
If your credit documents are in compliance, then you can proceed to the refund process. This is the most important thing sellers care about. Similarly, there are two refund methods and procedures:
1. Check tax refund
If you are an offshore company and do not have bank information attached to your VAT account, the Tax Bureau will send you a refund check to your tax agent address, which must be redeemed under the bank's business account.
At present, it is difficult for overseas banks to exchange the check of the UK Internal Revenue Service. We have not learned that there is any case of the client successfully exchanging the check overseas. Therefore, if the tax bureau gives you a check, you can only use the check for future tax payment and ask the tax agent to send it back to the tax bureau.
2, tax refund to account
Offshore companies need to link a local UK bank account to your VAT account, with the account name corresponding to your company name, in order to receive the Inland Revenue Bank transfer. At present, there are third-party payment platforms that can provide such binding, and some of our customers have successfully received a tax refund of more than 1,000 pounds per month, which is very stable. (Specific can be consulted at the end of the article)
The following is the payment record of the tax bureau:
The first column is the date of payment
The second is the declaration period
The third is the way of payment - bank transfer
The fourth is the amount of the payment
To sum up, if your tax refund is generated in a reasonable and compliant manner, you are required to provide the relevant documents to your tax agent in the quarterly declaration, and the tax agent will calculate it in the declaration.