VAT is the most common tax in the UK, EU and many other countries, compliance is a must!
As one might assume, the tax authorities take non-VAT compliance very seriously. VAT is one of the most common indirect taxes in the world and is responsible for a large sum of revenue for many countries.
Failing to adhere to VAT requirements runs serious risks for businesses. Here are the top five risks non-compliant businesses can expect.
- VAT Audits and Inspections – Failing to register or meet your VAT obligations can trigger VAT inspections by the relevant tax authority which may yield fines and penalties.
- Banned from E-commerce Platforms – Tax authorities in partnership with platforms such as Amazon and eBay require those platforms to collect VAT on your behalf. If you can’t provide a valid VAT number you will most likely be banned from selling on those platforms.
- Interest and Fines – If you fail to submit full and timely VAT returns, tax authorities most likely will charge interest and fines which could be substantial.
- Damaged Business Reputation – Don’t be alarmed if the tax authorities reach out to your major clients asking for a record of their transactions with your company. This can make your clients uneasy and possibly question doing business with your company.
- Criminal Charges – Although extreme, know the tax authorities have the right to unlimited fines and imprisonment for severe non-VAT compliance.
Don’t chance not being VAT compliant. Get in touch with a VAT agency that can provide VAT registration, filing, reporting and, where needed, fiscal representation.
If you still have questions about your VAT obligations please contact our VAT specialists on +44 (0) 208-004-1160 in the UK, ++1 (714) 782-7000 in the USA or simply email us at query@MyVATdirect.com.
About My VAT Direct Ltd
My VAT Direct is a bespoke VAT registration, fiscal representation, calculation and filing service specifically designed to assist Amazon Sellers and e-commerce merchants who desire the benefits of cross-market selling without the worry of tax compliance in foreign markets.
My VAT Direct is comprised of knowledgeable and experienced tax experts, who for 10+ years have helped e-commerce sellers enjoy the selling opportunities a mass market can provide.
About SMBE Direct Ltd
My VAT Direct is a subsidiary of SMBE Direct, a world reaching B2B and B2C business services conglomerate, giving rise to exceptionally talented and well-experienced professionals organised into business units, that provide direct services to SMEs and enterprise level businesses, whereby increasing their brand awareness and sales.