Can I Use A Virtual Office Address To Register For VAT?
To effectively register for VAT, you must provide an address where your business activities are actually carried out. To put it another way, you must be doing something just at a physical address. When it comes to employing a simple virtual office with VAT registration, this requirement offers a problem. However there is a way out.You can use your real office or storefront if you have one. But what if you’re self-employed and work from home? What are your alternatives?
In this post, we’ll show you how to figure out if your company fits VAT requirements and, if so, which your options are for registering your location.
Focus Point
- VAT registration is a quick and painless process. However, registering VAT with a virtual space is not easy.
- You can also do it online, eliminating the need for snail mail or hours on hold on the phone.
- You must still pay VAT on your buys even if you’re not VAT registered, but you will not be able to recover it.
Is It Legal To Register For VAT Using A Virtual Space?
If you try to register for taxes using a virtual office address, the HMRC will send you a form to update. Furthermore, you cannot provide a virtual address for VAT payments; instead, you must give an address you registered with. Because a representative can review a customer’s inbound bills if the HMRC audits them. They may be disallowed as input tax if they really do not suit your registration details.
A survey shows that 50% of virtual office owners want to register for their VAT by using their Remote address. But for this purpose they need to hire a third party service provider.
Our Options For Resolving The Issue
The majority of your tasks will be performed while working at home for many company owners who have adopted remote working. This saves money on the cost of leasing a physical office. The Revenue Commissioners like to have your name and address as business VAT registration address in these circumstances. However, this isn’t ideal. Because your name and address must be displayed on all of your VAT invoices, you lose your privacy. Using your home address tarnishes your professional appearance and undermines your credibility with potential clients and suppliers.
There Is A Solution To The VAT Registration Problem.
Our virtual address plans were created to fix the problems by allowing you to use the address for your mail as well as facilitating the performance of your activities of the company at the physical address.
This is accomplished through pay-as-you-go access to work spaces, meeting rooms, and common desk areas. When you buy a virtual office from us, for example, you’ll have the option of using the physical area to do your business. You could work for as long as you like, whether it’s a day, a week, or a month. Board meetings, team gatherings, and interactions with suppliers and customers can all be held at the physical address.
This capacity to do operations at the location connects your business with your office location and physical office building. This can help you prove that you have activity at the address when applying for VAT registration.
To offer your VAT proposal the best possibility of success, you must establish that you use the physical area on a regular basis. In those other words, you must demonstrate that you have real resources at the site where you conduct business. You might potentially go a step further by enrolling in a full-time coworking subscription at the address, proving that you do have a physical link to the location. Coworking memberships are more costly than a virtual office, but when compared to the cost of a private office space, they still represent significant savings.
What Address Should You Use For VAT?
When filing for VAT in Bangladesh, you must enter the address where your business is actually conducted. It does not have to match the address of your company’s registered office.
Take, for example, a home-based business that is registered with Limited Companies using a virtual address for privacy reasons. In this instance, you must still register for VAT using your home address, as this is where your regular company operations take place.
A Postal box, an accountant’s address, or any “care of” address are also ineligible.
Check To See If You Need To Register For VAT At All.
It’s important to keep in mind that you might not need to register for VAT. If you don’t, you can just use the addresses for your company mail, website, and marketing materials and ignore the necessity to use the physical premises. Your annual turnover will determine not whether you need to register. If you’re not sure about VAT thresholds, check out our piece on Ireland’s Tax Structure for additional information.We hope that this article has clarified how to register for VAT to use a Remote address. If you’re interested in one of our Virtual Office Plans, you can order one from us online.