If you have crossed the threshold limit or wish to become a part of the vat or value added tax system then you will need to make an application for registration for vat to turn into a vat registered trader vatcheck.com. When you finally are a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby lower your costs and also enhance your business earnings.
Several eu countries like the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing products or services. Vat is thus followed even while trading between member eu countries. In case you have started a fresh business in the United Kingdom and have touched ?70,000 pounds in taxable sales in the past 12 months then you can definitely make an application for vat registration with the HM Revenue and Customs or hmrc department. You may also apply before threshold limit is achieved if you sell your goods or services to mostly vat registered traders. Vat registration can be done as an individual, partnership, company, trust, etc as deemed fit by the hmrc department.
However, as soon as you apply for vat registration your costs could increase slightly, and when you sell your products or services locally in the UK at the retail level then you could choose to remain outside of vat should you only sell vat exempt goods. However, if you try to artificially try to separate your enterprise activities simply to remain outside the system of vat then the hmrc vat department may not take your actions lightly if you’re discovered doing the same. There are several advantages of entering the vat system since it will avoid the problem of double taxation by allowing you to reclaim vat already paid on goods or services overseas too.
The entire process for registration for vat is pretty simple but if you aren’t sure about yourself then you definitely should simply appoint a professional vat agent to handle all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You are able to make an application for vat using your vat agent too provided you inform the department of your choosing. As soon as you make an application for vat registration then the procedure for approving the application typically takes between 10 to 30 days. Until then you can keep issuing regular invoices to your clients. However, during that period you will need to factor in applicable vat rates and re-issue those invoices issued after your application so that your clients can reclaim vat from their end.
As soon as your application is approved you will receive your unique vat registration number and will have to display it on all vat documents as well as your vat invoices, vat returns, and vat refunds. You will also have to issue a vat invoice that separately shows all vat rates applied in that invoice together with your vat no at the very top. You will need to give a breakdown of all vat paid and collected in your vat returns which will have to be filed periodically as required by the hmrc vat department. In case you have already paid vat on products or services in another eu country then you can try for vat reclaim once you are a certified vat registered trader.
Vat registration is a simple online process that has to be done first if you want to turn into a vat registered trader in the UK. You can simply fill up the web based vat registration form and submit it to the hmrc vat department when you apply for registration for vat.