VAT and accountant for UK LLP managed in UAE

[AtMo]

Hello Everyone, I'm operating my UK LLP in UAE, and the shareholders are all UAE residents. Our business is e-commerce, and our customers are from worldwide.

Do I need to do the audit in both UK and UAE? can anyone recommend any accountant in both countries please?

Do I need to pay VAT in UK and EU?

 

[Sols]

Hello Everyone, I'm operating my UK LLP in UAE

Any particular reason you went this route instead of forming a company in UAE?

and the shareholders are all UAE residents.

LLPs have members, not shareholders.

Do I need to do the audit in both UK and UAE? can anyone recommend any accountant in both countries please?

You can read about UK audit requirements and exemptions here: Filing LLP accounts at Companies House

It's anyone's guess whether you have to be audited in UAE. Your UK LLP is probably either tax resident in UAE or considered a PE/branch in UAE. On that basis, you probably fall under the UAE audit requirements.

However, if you're audited in UK, you probably don't have to be audited again in UAE (or vice versa).

There are no known good auditors in UAE because it's all brand new. You can probably play it safe and go with some of the major international companies until a couple of years have passed.

Do I need to pay VAT in UK and EU?

Yes, if you sell to UK and EU. Either you pay VAT or your customers pay it upon receipt/import of goods (in which case you probably won't see many repeat customers).

 

[AtMo]

Thanks for your response.

Any particular reason you went this route instead of forming a company in UAE?

My business involves crypto, the setup is for easier banking.

Yes, if you sell to UK and EU. Either you pay VAT or your customers pay it upon receipt/import of goods (in which case you probably won't see many repeat customers).

I haven't registered the VAT yet, I thought the UK LLP is a transparent entity, so I wouldn't need to pay VAT. I do have UK and EU customers, but it works like the customer pays to the e-commerce websites, and the website pays me, I only get payments from the websites, so I don't know if it counts as I have customers from the UK. My guess is that I need to ask the website if they already charge VAT from the customer or not?

 

[Sols]

I haven't registered the VAT yet, I thought the UK LLP is a transparent entity, so I wouldn't need to pay VAT.

VAT is not a corporate income tax (which is not applicable to LLPs), it's a consumption tax. Handled differently than corporate income tax.

I do have UK and EU customers, but it works like the customer pays to the e-commerce websites, and the website pays me, I only get payments from the websites, so I don't know if it counts as I have customers from the UK. My guess is that I need to ask the website if they already charge VAT from the customer or not?

I'm not sure what you do even qualifies as ecommerce. Your business might just be a fulfilment business of some sort. You'd have to look closely at the flow of funds and legal arrangements between yourself and the entity which runs the website, and between end-customers and the website.

It might be wise to speak with a UK based specialist, like VAT Specialist & Customs Consultants | The VAT People or RSM UK - audit, tax and consulting services. There are dozens upon dozens more. Those are just two that came to mind first.

 

[AtMo]

It might be wise to speak with a UK based specialist, like VAT Specialist & Customs Consultants | The VAT People or RSM UK - audit, tax and consulting services. There are dozens upon dozens more. Those are just two that came to mind first.

Thank you so much for the recommendation, I will reach out to the specialist about this case.