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by jlokier 1128 days ago
I did a UK VAT registration in 2020 and it took about a month. I did one back in 2005 or so and it took a similar time. Years is exceptionally slow.

The "additional fee" process is only intended to cover a few months at most. It doesn't work for a long period as your customers can't claim back the amount paid until they receive a replacement invoice formally recordable as VAT, when your registration comes through. If "additional fee" is done for longer, that creates a situation where you end up having to lower your price to business customers who normally don't count VAT in the price because they can quickly reclaim it, but you are still paying VAT on that income (by having to set it aside). That combo is not how VAT is supposed to work.

1 comments

I wonder if the difference is that you are in the UK? We're not. We're in the US.

Prior to the Brexit implementation we dealt with VAT on sales to EU customers using the VAT MOSS system, with Ireland being the country we were registered with.