UK VAT for Overseas Companies – Real Estate and Trading Compliance

Introduction

Expanding into the UK comes with regulatory responsibilities, and Value Added Tax (VAT) registration is one of the most critical for foreign companies. Whether selling goods in the UK, providing digital services, or investing in real estate, understanding your VAT obligations is essential to remain compliant and avoid penalties.

At Fraser Bond, we support international companies by providing access to experienced VAT specialists and seamless coordination with property, legal, and financial advisors. Our clients benefit from expert guidance that ensures their VAT registration is timely, efficient, and aligned with their commercial objectives.

When Does a Foreign Company Need to Register for VAT in the UK?

1. Selling Goods or Services in the UK

If a foreign company makes taxable supplies of goods or services in the UK, VAT registration is mandatory if the total value exceeds the UK VAT registration threshold (£90,000 as of 2025). However, non-established taxable persons (NETPs) must register for VAT from the first taxable sale, regardless of turnover.

2. Storing Goods in the UK

If your business holds stock in UK warehouses or uses fulfilment services (such as Amazon FBA UK), you're required to register for VAT—even without a physical presence.

3. Property Transactions

Foreign companies purchasing, developing, or letting UK commercial property may need to:

• Register for VAT to recover input tax

• Charge VAT on rental income or sales

• Navigate VAT elections on opted land and buildings

Fraser Bond helps foreign investors assess VAT impact when acquiring UK real estate.

The VAT Registration Process for Foreign Companies

Step 1: Determine Eligibility and Obligations

• Identify if your activity qualifies as taxable

• Understand whether you qualify as a non-established taxable person (NETP)

• Determine whether the reverse charge or distance selling rules apply

Step 2: Submit VAT Registration Application (VAT1 Form)

Non-UK companies must complete the VAT1 or VAT1TR form (for businesses trading goods via Amazon or online platforms).

Documents required may include:

• Certificate of incorporation

• Company ID and address proof

• Description of business activity

• Contracts, invoices, or UK property documents

• UK agent details, if using a fiscal representative

Step 3: Receive VAT Number

HMRC typically issues a VAT number within 10–30 working days, though delays may occur if additional checks are required.

Step 4: VAT Returns and Compliance

Once registered, your company must:

• Submit quarterly or monthly VAT returns

• Maintain VAT-compliant invoices

• Record and store transactional data for at least 6 years

• Adhere to Making Tax Digital (MTD) requirements using approved software

Does a Foreign Company Need a Fiscal Representative?

While most foreign companies can register without a fiscal representative, those based outside the UK and not in the EU may choose to appoint one to manage:

• VAT filings

• Correspondence with HMRC

• Representation in case of audits

Fraser Bond can introduce trusted UK-based VAT advisors and fiscal representatives who specialise in foreign company compliance.

VAT for Real Estate Investments – A Special Focus

Foreign investors involved in UK commercial property acquisitions, lettings, or development may:

• Opt to tax land and buildings to reclaim VAT on construction costs

• Pay VAT on property purchases (if the seller has opted to tax)

• Recover input VAT on professional fees and refurbishments

Fraser Bond provides:

• Strategic structuring advice to manage VAT exposure

• Coordination with property solicitors, accountants, and VAT experts

• End-to-end transaction support to ensure compliance and efficiency

Fraser Bond – Your Partner in UK Market Entry and VAT Strategy

Fraser Bond supports international companies with:

• Real estate sourcing and investment advisory

• Company formation and legal structure coordination

• VAT registration, filing, and compliance through expert partners

• Long-term business support tailored to UK regulations

Our clients trust us to manage both the practical and strategic elements of UK market entry—VAT included.

Conclusion

Navigating UK VAT registration as a foreign company may seem complex, but with the right support, it becomes a strategic advantage. Whether you’re an e-commerce seller, investor, or international firm expanding into the UK, Fraser Bond ensures your VAT obligations are met with precision and your commercial goals remain on track.