In this section:
VAT for agents and advisers
If you have been asked by a client to handle their VAT affairs, there are a number of ways that the processes can be made simpler. These can help you save time and money, whether you're dealing with domestic VAT or international trade issues. This guide will show you:
- how to set up and manage VAT for your clients
- the key issues you need to be aware of in terms of confidentiality
- international trade essentials
- how to access useful online tools for VAT
On this page:
- VAT Online for Agents Service
- Paper-based VAT authorisation
- Managing VAT online for a large number of clients
- Confidentiality issues for agents
- VAT and international trade - key issues
- Useful VAT tools and calculators
- More guidance on managing VAT
VAT Online for Agents Service
You can submit an online VAT Return for a client if:
- you're registered for VAT
- you've been appointed online by your client to act on their behalf
When you send in a return online on behalf of a client, your client remains legally responsible for the declaration and the payment of any VAT.
Benefits
There are many benefits to using the VAT Online Service including:
- boxes three and five of the return are calculated automatically, which cuts down the number of errors
- we send you a reminder to let you know when your client's online return is due
- you get an instant on-screen acknowledgement that we've received the return
- there's up to seven extra days for each payment and return to reach us
- there's an extra three days after the extended return date for direct debit payments
- we send you a reminder to let you know when your client's VAT Online return is due
Agents and clients - getting started
Both you and your client need to sign up for the VAT Online Returns Service. You'll have to create a Government Gateway account using:
- your last return
- your VAT Registration Certificate - VAT 4
Visit the Government Gateway website
Once you've created your account you need to register as an agent at the Government Gateway website. Then you need to select the VAT Online for Agents Service to get an Agents ID. We'll send you a PIN by email so you can activate the service. You'll then be able to access the VAT Returns for Agents Service.
Once your client has registered and activated their account, they'll be able to appoint you as their VAT agent at the Government Gateway website. You'll need to give them your Agent ID so they can do this.
Register as an agent at the Government Gateway website
View a demonstration of registration and enrolment for VAT
Paper-based VAT authorisation
If your client isn't able to appoint you as their agent online, they can fill in form 64-8 Authorising your Agent and send it to us. We'll then be able to deal with you in writing or by phone about your client's VAT matters. But you won't be able to send in their returns online - they need to authorise you to do this through the Government Gateway website to do this.
Download form 64-8 'Authorising Your Agent'
Find out how clients can authorise you as their agent
Managing VAT Online users and assistants
Once you have registered and enrolled, you can arrange for other users and assistants in your organisation to use VAT Online for agents too. You do this through the 'Manage users' link in the Agents' area of the Government Gateway website.
If you set up other people as users, they'll be able to access the online services that you've registered for and activated. They'll also be able to:
- register and remove services
- create and delete other users and assistants
- change their own registration details
If you set up other people as assistants, they'll only be able to use the particular online services that you assign to them. They'll also be able to change their own registration details.
Managing VAT online for a large number of clients
If you have a large number of clients you may want to use our XML VAT Returns Service or XML EC Sales List (ECSL) Service. These services allow you to submit a large number of VAT returns or ECSLs at the same time. If you use these services it means that you don't have to do any manual processing.
To use either service you'll need to buy a software package. This may be commercial or bespoke but it must allow the return to be set out and viewed before it's submitted.
We provide a validation service to help software providers test their products. If the test is successful, we add details of the software and the provider to our list of available packages.
You'll need to be registered with the VAT Online Returns Service to use the XML VAT Returns Service. To use the XML ECSL Service you'll need to enrol for the ECSL Service.
Read about the XML VAT returns service
Find out about the XML EC Sales List Service
Confidentiality issues for agents
In your role of agent you're likely to communicate with your client and other tax advisers about your client's past and future VAT affairs. This communication may include:
- notes of meetings and telephone calls
- internal memos
- letters and faxes
- management letters
We recognise that you have a duty of confidentiality to your clients. We won't normally ask you or your client to give us details of communications that relate to confidential opinion or advice.
Guidelines
The Institute of Chartered Accountants in England and Wales (ICAEW) and the Chartered Institute of Taxation (CIOT) have professional guidelines that their members should follow in cases of VAT fraud. If you're not a member of the ICAEW or the CIOT you may decide to follow the guidelines of either of these bodies.
Read our statement of confidentiality for agents in VAT matters
VAT and international trade - key issues
When you're dealing with international clients, we advise you to take specific steps to protect yourself from becoming involved in fraud.
EU VAT registration number check
We advise you to check the VAT identification number of all new EU customers. As a first step, you can check their VAT number is valid on the Europa website. But we strongly advise you to check with us by telephone as well. We'll then be able to validate the VAT number and also check the client's name and address.
You can contact us on Tel 0845 010 9000 or +44 2920 501 261 from outside the UK. Lines are open from 8.00 am to 8.00 pm, Monday to Friday.
Check an EU VAT number at the Europa website
Simplified Import VAT Accounting (SIVA)
The Simplified Import VAT Accounting (SIVA) system can be a particular target for fraudsters. So it's a good idea to carry out further checks on your clients to protect yourself. You also have a duty of care to take reasonable steps to make sure your clients aren't involved in fraud.
The types of checks you make are likely to vary depending on your own circumstances and how well you know your client. We don't publish a list of checks you should make because this would make it easier for fraudsters. Some of the things to consider are:
- the type of checks you made to decide if the client is honest, and the actions that you took after making the checks
- the type of goods that are being supplied
- payment arrangements and conditions
- movement details of the goods
Find out about SIVA and your duty of care
Useful VAT tools and calculators
We've developed some useful tools to help with general VAT and international trade issues.
VAT schemes wizard
Accounting for VAT can be time consuming and expensive, but there are alternative schemes that can help. These include:
- the flat rate scheme
- the annual accounting scheme
- the cash accounting scheme
The VAT schemes wizard helps you decide the scheme that's best for a particular business. You'll be asked some basic questions about how the business has managed VAT in the past and what its annual turnover is expected to be.
Find out about identifying the best VAT scheme for a business
Ready reckoner - flat rate scheme
This tool can help you decide if it's worth a business switching to the flat rate scheme, by estimating likely VAT payments. The scheme lets businesses work out VAT as a flat rate percentage of their turnover, instead of having to work out VAT on sales and purchases. The percentage used to calculate VAT depends on the particular trade sector. To use the ready reckoner, you'll need to have one of the following:
- estimated future turnover of the business
- information from previous VAT returns
Tariff information - UK
The Integrated Tariff of the UK - known as The Tariff - is a very important tool if you need to keep up to date with changes in:
- commodity codes
- rates of duty
- regulations
You can subscribe to it online, on paper or CD-Rom format, or as a data feed.
Tariff information - EC
The TARIC Consultation Service gives access to a wide range of data that importers and exporters need, including:
- nomenclature
- commodity codes
- duty rates
- regulations
It's updated every day with the latest changes to legislation. Users can also link to the euro conversion rates used for trading.
Find out about the TARIC Consultation Service
EC Country Codes and customer VAT Number formats
We provide a list of Country Codes and customer VAT Registration Number formats for countries in the EC.
Read the list of EC Country Codes and VAT Number formats
More guidance on managing VAT
To get more practical advice on all aspects of managing VAT for your clients, check the VAT section on this website.
It covers:
- registering for VAT
- charging and reclaiming VAT
- keeping records, invoicing and accounting for VAT
- VAT returns, paying and claiming VAT
- VAT problems, inspections and investigations
- international trade and VAT
