Trading with the foreign countries requires the proper knowledge and understanding of their local tax system and general rules. It is the sole responsibility of the company to look over the taxation obligations of the country in which they are going to operate trading with. Without any registration with the tax authorities of the respective country any company cannot do their trading with them.
It is generally recommended to refer to the fiscal representation system of the country to trade with. Fiscal representation in UK is not much complicated as that of other European countries. In UK foreign companies can register themselves for the revenue and customs as Non-Established Taxable Person. Further registration for the VAT number initiated by self or by appointing any local fiscal representative. The process of VAT registration begins with the collection of required documentation along with the application form. The import declaration form has to be filled along with the import duty payment to be made to the tax authorities.
The VAT returns should be paid regularly to administration in order to maintain the smooth trading operations for the foreign company. The inspections by the tax authorities are done regularly so it is important to maintain the documentation and payments by the company. As the documentation has to be done in English there are no much communication barriers between the company and tax authorities normally. The fiscal representative is not must for the fiscal representation in UK but can be appointed by the company if needed.
The customs authorities verify the documents submitted by the company timely so that there are no complications during the trading operations. Registering for the VAT services and customs is highly recommended for the non-resident trading companies involving in the import/export business operations with the UK borders.