Scottish LP, is it possible to work with UK customer?

[Serni]

Hello,
I have Scottish LP which I am using for the trading outside of the UK. It's very convenient for me and I officially and legally don't pay taxes for the activity I do outside of the UK.
Now I am having the new client from the Northern Ireland, which is the part of the UK. I want to buy goods from Russia and to sell him.
If I do it from the Scottish LP, which consequences I will meet? How could I do that legally?
Thank you.

 

[CaptK]

1. VAT @20% there is no way round that.
2. Corporation tax.

You are better off to set up a Seychelles or BVI to sell to the UK.

So long as you are not a UK resident.

 

[fshore]

CaptK said:
1. VAT @20% there is no way round that.
2. Corporation tax.

You are better off to set up a Seychelles or BVI to sell to the UK.

So long as you are not a UK resident.
Click to expand...

That is not correct. Vat depends on where the goods is shipped from and the terms of the sale, not where the company is incorporated.

 

[CaptK]

fshore said:
That is not correct. Vat depends on where the goods is shipped from and the terms of the sale, not where the company is incorporated.
Click to expand...

UK company selling to a UK company VAT is applicable. Company in Scotland selling to a company in Northern Ireland, means that he is liable for import duty regardless of whether it gets delivered direct from manufacturers.

I dropship electric scooters from China to UK then distribute to resellers. I could ship from an offshore company and not pay VAT but my aim is to build it up and sell.

 

[JustAnotherNomad]

I'm not an expert on UK taxes or import duties (never been involved with physical products), but:

1. As @fshore wrote, VAT does not really depend on where a company is incorporated. It's about where goods are are shipped from and to whom, and at what volume (thresholds for VAT registration).
2. Why would a partnership have to pay corporate income tax? And even more so, even if it was a corporation, on what grounds? Corporate income tax requires permanent establishment. I really could not imagine that having UK clients would trigger permanent establishment rules, let alone if it's only one client.

I would recommend OP to talk to a UK accountant.

 

[fshore]

CaptK said:
UK company selling to a UK company VAT is applicable. Company in Scotland selling to a company in Northern Ireland, means that he is liable for import duty regardless of whether it gets delivered direct from manufacturers.

I dropship electric scooters from China to UK then distribute to resellers. I could ship from an offshore company and not pay VAT but my aim is to build it up and sell.
Click to expand...

I advice you to check the vat rules again and incoterms.