If you have crossed the threshold limit or wish to be a part of the vat or value added tax system then you’ll need to apply for registration for vat to turn into a vat registered trader Www.vatcheck.com. When you finally turn into a vat registered trader then you will be empowered to reclaim vat paid in another eu country and thereby decrease your costs and also enhance your business cash flow.
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 UK and have touched ?70,000 pounds in taxable sales during the past 1 year then you can make an application for vat registration with the HM Revenue and Customs or hmrc department. You can even apply before this threshold limit is achieved if you sell your services or goods 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, once you make an application for vat registration then your costs could increase slightly, and if you sell your goods and services locally in the UK at a retail level then you could opt to remain outside of vat should you only sell vat exempt goods. However, if you try to artificially make an effort to separate your business activities only to remain outside the system of vat then the hmrc vat department might not take your actions lightly in case you are discovered doing the same. There are several benefits of entering the vat system since it will avoid the problem of double taxation by permitting you to definitely reclaim vat already paid on goods or services overseas too.
The whole process for registration for vat is quite simple however, if you are not sure about yourself then you definitely should simply appoint an expert vat agent to deal with all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You can apply for vat through your vat agent too provided you inform the department of your choice. Once you make an application for vat registration then this process of approving your application typically takes between 10 to 30 days. Fo the time being you can continue issuing regular invoices to your clients. However, during that period you will have to take into account applicable vat rates and re-issue those invoices issued after your application so your clients can reclaim vat from other end.
Once your application is eligible you will receive your unique vat registration number and will have to display it on all vat documents including 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 the invoice together with your vat no at the top. You will have to provide a breakdown of all vat paid and collected in your vat returns which will need to be filed periodically as needed by the hmrc vat department. In case you have already paid vat on goods and services in another eu country then you can apply for vat reclaim once you are a certified vat registered trader.
Vat registration is a straightforward 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 your hmrc vat department whenever you apply for registration for vat.