Tax on profits
Any foreign company with a UK branch or office must pay UK Corporation Tax. The current corporation tax rate is 19%, reducing to 17% by 2020. At the current rate of 19%, the UK has the lowest headline business tax rate in the G20.
Tax on sales
Value Added Tax (VAT) must be charged and paid on goods and services. UK VAT is charged at 20%, although there are some exceptions. UK businesses that sell goods or services charge VAT on sales and customers who are themselves registered for VAT will be able to recover VAT paid out.
VAT is not applied to most export transactions, although it is likely to apply to sales to non-VAT registered businesses and private individuals within other EU countries.
Tax on imports
Imports into the UK (and other EU countries) from non-EU countries will have an import duty charge to pay on goods but not services.