If you are planning to market services or goods in the UK then you definitely might soon need to turn into a VAT registered trader in order to achieve it you will have to complete a vat application for vat registration and vat refunds in the foreseeable future. It really is however, essential that you get your application right the first time around for seamless integration into the vat tax system.
The UK along with most of the eu countries have shifted over to vat or value added tax for taxing goods and services sold in their respective countries and even re-exported out of those countries. In case your trading business deals in a very modest scale to individual end-users you then might not have to sign up for vat simply because this will allow you to keep the costs at a lower level. However, once your sales touch the vat threshold limit of 70,000 sterling pounds in the previous 12 months or if you think that this figure could be achieved in the coming 30 days then you will have to apply for vat registration.
In the UK all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. In case your sales are near the vat threshold limit or if you think that you have to issue vat invoices to all your customers then you should submit an application for vat certification to the hmrc. It is possible to do so by making an online application, particularly if you are an individual running your individual business. You can easily fill a vat form known as VAT 1 online and submit it online to hmrc vat department. Should your business is a partnership, a company, a trust, a charity, or other kind of organization then you can download the applicable vat application but will have to print it in your end, fill it up and dispatch it physically to hmrc.
In the event the hmrc vat department doesn’t have any additional queries upon receiving the application then you can certainly expect your vat certificate to arrive within one month. Thus, if you wish to receive your vat registration without any hiccups then you should hire a vat agent who has expertise in uk vat as well as eu vat systems so that there’s complete adherence to all vat rules. Your vat agent may also guide you during filing of vat returns.
Should you import goods or services from other eu countries that 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 can make necessary vat applications for vat refunds within the stipulated time. This will help redirect vital funds back into your business. Since all applications associated with vat usually are of time-bound nature, it is important you file them well within the stipulated time period.
If you want to charge vat to your clients then you’ll have to apply for vat registration to the hmrc once your business becomes entitled to such a move. You should enrol the aid of an expert vat agent so your vat application is approved instantly and your vat registration and future vat refunds are awarded without any problems.