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Ask Your Own Question, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4995
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am currently a sole trader in the UK. I am going to be

Customer Question

I am currently a sole trader in the UK. I am going to be moving to Dubai and setting up my registered office there. However, I will still hold stock in the UK & be selling to consumers in the UK & Europe online. Will I still be liable for UK tax & VAT?
Submitted: 1 year ago.
Category: UK Tax
Expert: replied 1 year ago.

Thank you for your question.

Please advise

if you would be conducting any business from a base in the UK once you have relocated to Dubai?

Is the stock being transferred to your new company with a base in Dubai?

Many thanks

Customer: replied 1 year ago.
Only my registered office will be in Dubai. I won't be holding any stock there. Would it make a difference if I held stock in the UK as opposed to keeping it Dubai & then shipping it on to the UK?
Customer: replied 1 year ago.
in terms of tax/VAT liability
Expert: replied 1 year ago.

Thank you for your reply.

I am confused... you say you are moving to Dubai and yet you have not confirmed whether the company's trading address will be in UAE.

First of all, if you wish to use the stock that is in your name as a sole trader, it would have to be transferred to the new company. If the new company is UK based and not VAT registered then stock transfer would attract VAT provided you are registered for VAT as a sole trader.

Stock could be held in a bonded warehouse at any location. VAT and corporation tax come in the equation if you are trading as a foreign company with a branch or office in the UK.

If it is your intention to trade from the UAE, you are advised to keep your stock outside the UK and ship it to the UK for customers based in the UK.

If you held stock in the UK, you are implying you have a base in the UK you trade from. If you are not VAT registered, then you would not be able to recover any VAT paid on your purchases.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.
I am looking to use Dubai as my registered company address. I will be living there too but running the business remotely from the UK, my stock will be in the UK. I'll be selling to UK & customers in other European countries. The physical stock would be in the UK.
Customer: replied 1 year ago.
The trading address will be in the UAE.
Customer: replied 1 year ago.
running the business remotely in the UAE*
Customer: replied 1 year ago.
Meaning I'll be selling my stock sat in the UK to UK customers.
Customer: replied 1 year ago.
I'm trying to enter my phone number for you to call me but it doesn't let me enter my full number. One digit too short....
Expert: replied 1 year ago.

Thank you for your reply...

You may be selling the goods remotely from the UAE but the business address appears to be in the UK.

Sales to UK customers from a UK base would be taxable supplies and provided your turnover is above the VAT threshold these would be chargeable to VAT at standard rate unless the goods are zero-rated.

I am happy to discuss your case on the phone as an additional service. Please let me know if this is acceptable.