Telephone cards distribution business

VAT

• Explanation of Place of Supply Rules regarding telecommunications services.

• Phone cards – goods or services?  Impacts physical delivery to UK establishment.

• VAT rules for telephone cards,  face value cards /vouchers, pre-paid, post-paid cards, promotional schemes etc,

• VAT rules at distributor level & retail level – taxed when sold or taxed when used.

• “Reverse charge” VAT rules for phone cards.

• VAT registration process – what HMRC will ask and what the business will have to provide.

• VAT presence/nexus in terms of physical UK office and internet selling.

• Comparative study of offshore jurisdictions for internet business. 

• How to track who is using your service for internet sales?  What the VAT law requires you to do?

• Electronic invoicing and record keeping in Europe (on-line sales) – your billing records will be audited regularly.  Do you wish to avoid expensive financial penalties for non-compliance?

• VAT rules regarding selling from physical location in UK. 

• What is the difference between “business” establishment and “fixed establishment – concepts which are critical to application of VAT to your sales.

• Preparation of VAT returns, declarations and payment of VAT.

• Reclaiming VAT suffered on inputs & business expenses to reduce your VAT bill.

• VAT rules regarding buying or procurement from main suppliers.

Direct tax (corporate income tax)

• Strategy for a suitable onshore-offshore structure for corporate tax for online sales and physical distribution.

• Impact of transfer pricing regulations.

• Impact of permanent establishment rules  (different from the VAT establishment rules).

• Use of tax treaties.

• Impact of UK Controlled Foreign Companies legislation.

• Procedure for UK corporate tax returns for the UK company.

• UK company or branch office?

Please contact us for further details.