The UK Taxation Agency released the latest policy news, and the news said that the new VAT fine policy will be launched in 2023! Tax reviews and illegal penalties will become more severe.
When I first entered the cross-border circle, I thought I only needed to choose a good product for advertising to count money. It’s too naive to think about it now!
Tax compliance is the top priority when going overseas. From taking off the shelves to banning and fines...every consequence can make you sweat. Not only that, the UK Revenue Service has also released the latest policy: the new VAT fine policy will be launched in 2023! Tax reviews and illegal penalties will become more severe.
When tax compliance becomes the red line, sellers still post to inquire. What to do if VAT is missed? Is it related to not having sex?
In response to this, the comment area has caused a lot of discussion, and it is recommended to make up for it as soon as possible, otherwise the account may be banned and the store must not be lost due to small things! What are the effects of missing or late interception?
VAT missed and late submission will face two major impacts. First, if the tax bureau violates regulations, it may be necessary to pay late fees and fines; second, the most important thing is to affect the operation of the platform account. Once discovered, it is very likely that the store will be closed, affecting inventory sales and taking on greater losses!
According to the current relevant system of the UK Taxation Office, if it is involved, the VAT missed and late payment will be recorded as default (not fulfilling tax liability):
1. VAT is not declared within the deadline (more correctly, the Taxation Office did not receive the VAT return before the deadline);
2. The Taxation Office did not receive the VAT tax before the deadline. The seller who is recorded as "default may need to pay a surcharge. That is, the first time the default is recorded usually enters a 12-month surcharge cycle. If the default fee increase cycle is remembered again within the cycle, the default fee increase cycle will be extended by another 12 months.
If you sell VAT, in addition to paying VAT, in addition to owing money, you may also need additional fees. According to the current policy, illegal sellers only need to pay late fees, which is relatively tolerant. However, the latest policy released by the UK Taxation Office is explosive for sellers!
UK Taxation Office: New VAT fine policy is enabled in 2023!
Latest policy is released! The UK Taxation Office HMRC adds The VAT penalty and interest rules will be modified from 1 January 2023. The previous default surcharge (late payment fee) will be replaced by new regulations, and the calculation method of VAT interest will also change.
late filing fine
UK Taxation Office will adopt the points system to obtain points system. Every time the filing period is missed, the company will be scored. If the score exceeds 4 points and then the declaration is later, a fine of £200 will be imposed. In the future, each delayed declaration will incur an additional £200 fine and enter a 12-month observation period. If there is no delayed declaration during the observation period, it can be cleared Previous points. If
pays taxes at night and fails to pay taxes on time, it is a step-by-step fine rule: pay the arrears in full within 1-15 days of overdue payment, and there is no fine; pay the arrears in full within 16-30 days of overdue payment, and a fine of 2% of the 15th tax amount is imposed; after 31 days of overdue payment, 2% of the 30th tax amount is imposed as a fine, and the daily fine with an annual interest rate of 4% is accumulated on a daily basis until the tax office receives the full tax. In short, after the overdue penalty, the earlier the payment is paid, the lower the interest on the fine.
In order to help enterprises adapt to the new fine rules, the British Tax Office It is stated that if the company pays the Tax Bureau from the evening of January to December 2023 and pays within 30 days after the due date, there will be no fine.
Overdue payment interest
From January 1, 2023, the Tax Bureau will also collect tax-based interest. The interest on late payment is calculated based on the Bank of England base interest rate plus 2.5%. Sellers should pay attention to tax changes to avoid large fines caused by missing the deadline. How to avoid related losses
?
To avoid VAT sellers need to miss or late payments: 1. Choose a reliable intelligent tax declaration platform; 2. Register VAT according to the guidelines; 3. Obtain VAT declaration and payment rules and time; 4. Register VAT regularly.
In the cross-tax cloud, don’t worry about missing the declaration! The cross-tax cloud will remind customers to declare VAT multiple times a month through text messages to avoid missed payment, forgetting payment, and late payment.
Follow the UK sellers! VAT is a mandatory compliance policy, whether it is a local regulatory department or a cross-border e-commerce platform. VAT tax review and supervision is very strict and cannot be applied for overdue declaration. Yunmeier recommends choosing a professional and reliable service provider. Only by registering, filing and paying taxes can you avoid losses.
