www.bifa.org


Policy & Compliance


number will be required for all international traders, it does not mean Members are dealing with a trader established in the EU.


VAT registration Checking the VAT registration number may seem like an obvious way to establish the status of a business but this again, similarly to EORI, may be misleading. The UCC definition applies to the EU establishment, hence businesses registered in other member states will be treated just like UK businesses. Additionally, the UK regulator recognises the notion of non- established taxable persons or businesses (NETPs) which may be required to be registered for VAT purposes in the UK. These businesses may still be considered to


be established in the EU if their main business centre is located in another member state, but VAT registration alone will not make them an EU established business if they do not meet the criteria specified in the previous paragraphs.


focus of HMRC’s policies toward traders’ compliance, but how can Members make sure that their business partner is an established entity within the EU? Here are a few helpful questions you can ask


and hints that may prove helpful when determining the establishment status of a customer.


EORI registration The EORI number is required for business importers and exporters but it is not linked to the UK or EU establishment. Non-established businesses operating in the UK will be required to register under the EORI scheme just like UK- established business. The EORI Validation Checker will not make a distinction between the two categories either, so whilst the EORI


Support your local Member group


BIFA holds Regional Member meetings around the UK and listed right are those due to occur soon. If you would like to attend and find out more about BIFA and what we do, then contact the appropriate Regional Consultant to BIFA. All BIFA Members are entitled and


encouraged to attend their regional meetings however pre-booking with the named contact is essential. Full contact details are shown on page 3 of


this issue. September 2018 9


Companies house registration As previously stated, HMRC would also normally consider a company which is incorporated in the UK to have an establishment here as long as it is able to receive business supplies at its registered office. This is built on the premise that a registration


requirement for overseas companies only exists if a company has some degree of physical presence in the UK (such as a place of business or branch) through which it carries on business, and that registration is not required if there is no physical presence in the UK. It is, however, important to remember that an


independent agent who conducts business on behalf of the overseas company does not meet the criteria of UK establishment for an overseas company; neither does an occasional location


Region Stansted


Regional Members’ meeting Heathrow


Regional Members’ meeting Anglia


Regional Members’ meeting Gatwick


Regional Members’ meeting London East


Regional Members’ meeting Solent


Regional Members’ meeting Heathrow


Regional Members’ meeting Date


BIFAlink


such as a hotel where a director may conduct business during periodic visits to this country.


Conclusion BIFA’s standing message to the Members is ‘know your customers’. This should start with their office address and


whether or not it is in the UK or wider EU. As stated above, Members should not make


an automatic assumption that a VAT and EORI registered business is established in the UK/EU. This particularly applies to e-commerce


sellers regularly registered for VAT purposes but having no physical presence in the country. One of the measures Members should apply when vetting their customers is checking the details available publicly on VAT Information Exchange System (VIES). If the company in question is registered under


an HMRC NETP address in Aberdeen (Ruby House, 8 Ruby Place, Aberdeen, AB10 1ZP) that is a good indicator it is at least not established in the UK and further checks should apply. Similarly, a company registered under a VAT or tax advisor’s address should be checked more thoroughly on the grounds of establishment. Companies House registration, due to the set


of requirements imposed on companies, is generally a more reliable indicator of establishment status, but even here common sense and due diligence should apply. BIFA cannot recommend one standard


solution to the establishment question, but we advise Members to be diligent and thorough when checking their customers.


Useful links: http://ec.europa.eu/taxation_customs/vies/ http://ec.europa.eu/taxation_customs/dds2/ maintenance_DDS2-EOS.html www.gov.uk/get-information-about-a-company


Time Venue BIFA Contact Wed 26 Sep 1130 Stansted Airport Limited Colin Young Thu 27 Sep 1400 BIFA, Redfern House Colin Young Wed 3 Oct Thu 4 Oct Thu 4 Oct Tue 16 Oct Thu 25 Oct 1000 Holiday Inn, Ipswich – Orwell


1230 Air & Cargo Services, Colin Young Crawley


1400 DP World, London Gateway


0800 Duke of Wellington, Southampton


1400 BIFA, Redfern House Colin Young Colin Young Paul Newman Paul Newman


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20