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]

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

LLPs have members, not shareholders.‍

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 fall︀ under the UAE audit requirements.

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

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

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

 

[AtMo]

Thanks for your response.
My business involves crypto, the setup is‍ for easier banking.
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 pays︀ to the e-commerce websites, and the website pays me, I only get payments from the︁ 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 VAT︃ from the customer or not?

 

[Sols]

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

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

 

[AtMo]

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