If you are planning to sell goods or services in Britain then you might soon need to turn into a VAT registered trader and to achieve it you will have to complete a vat application for vat registration and vat refunds in the future. It is however, important that you get your application right the first time around for seamless integration into the vat tax system.
The UK along with the majority of the eu countries have shifted to vat or value added tax for taxing services and goods sold in their respective countries or even re-exported out of those countries. If your trading business deals at a very modest scale to individual end-users you then might not need to sign up for vat since this will let you keep your costs in a lower level. However, when your sales touch the vat threshold limit of 70,000 sterling pounds within the previous Yr or if you feel that this figure could be achieved within the coming 1 month then you will have to make an application for vat registration.
In the UK all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. If your sales have reached the vat threshold limit or if you think that you have to issue vat invoices to all your customers then you should make an application for vat certification to the hmrc. It is possible to achieve this by making an online application, especially if you are an individual running your own business. You can simply fill up a vat form known as VAT 1 online and submit it online to hmrc vat department. In case your business is a partnership, a company, a trust, a charity, or any other type of organization then you can download the applicable vat application but will need to print it out at your end, fill it up and dispatch it physically to hmrc.
If the hmrc vat department doesn’t have any additional queries upon receiving the application then you can expect your vat certificate to arrive within 30 days. Thus, if you wish to receive your vat registration with no hiccups then you should hire a vat agent who has knowledge of uk vat as well as eu vat systems so that there is complete adherence to all or any vat rules. Your vat agent may also guide you during filing of vat returns.
If you import goods or services from other eu countries which have already charged you vat on the very same then you will again need to make a vat refund application to recover that double-taxed amount. Again, your vat agent would be able to make the necessary vat applications for vat refunds in the stipulated time. This will help redirect vital funds directly into your enterprise. Since all applications associated with vat tend to be of time-bound nature, it is crucial that you file them within the stipulated time period.
If you would like charge vat to the clients then you’ll have to apply for vat registration to the hmrc once your business becomes entitled to this kind of move. You should enrol the aid of a professional vat agent so that your vat application qualifies instantly and your vat registration and future vat refunds are awarded without problems.