If you have crossed the threshold limit or want to be a part of the vat or value added tax system then you’ll need to make an application for registration for vat to turn into a vat registered trader Www.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 improve 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 whilst trading between member eu countries. In case you have started a new business in the UK and also have touched ?70,000 pounds in taxable sales during 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 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, as soon as you apply for vat registration then your costs could increase slightly, and if you sell your products or services locally in the UK at the retail level then you may opt to remain outside of vat if you only sell vat exempt goods. However, if you try to artificially try to separate your enterprise activities only to remain away from system of vat then this hmrc vat department may not take your actions lightly if you’re discovered doing precisely the same. There are many benefits of entering the vat system since it will prevents the problem of double taxation by allowing you to reclaim vat already paid on services or goods in another country too.
The entire process for registration for vat is quite simple however, if you aren’t sure about yourself then you 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 can make an application for vat using your vat agent too provided you inform the department of your choice. As soon as you apply for vat registration then the procedure for 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 that your clients can reclaim vat from other end.
As soon as your application is eligible then you will receive your unique vat registration number and may have to display it on all vat documents as well as your vat invoices, vat returns, and vat refunds. You will also need to issue a vat invoice that separately shows all vat rates applied in that invoice along with your vat no at the top. You will have to provide a breakdown of all vat paid and collected within your vat returns that will need to be filed periodically as required by the hmrc vat department. In case you have already paid vat on goods and services in another eu country then you can certainly apply for vat reclaim once you are a certified vat registered trader.
Vat registration is a straightforward online procedure that has to be done first if you wish 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 make an application for registration for vat.