If you plan to sell goods or services in Britain then you definitely might soon have to turn into a VAT registered trader and to achieve it you will have to make a vat application for vat registration and vat refunds in the future. It is however, essential that you get the application right the first time around for seamless integration into the vat tax system.
Great Britain along with most of the eu countries have shifted to vat or value added tax for taxing goods and services sold in their respective countries or even re-exported from 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 allow you to keep the costs in a lower level. However, when your sales touch the vat threshold limit of 70,000 sterling pounds in the previous 12 months or if you think that this figure might be achieved in the coming 30 days then you’ll need to apply for vat registration.
In Britain all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. In case your sales have reached the vat threshold limit or if you feel that you need to issue vat invoices to any or all your customers then you should make an application for vat certification to the hmrc http://vatcontrol.com. You can easily do so by looking into making a web-based application, particularly if you are an individual running your individual business. You can simply fill up a vat form referred to as VAT 1 online and submit it online to hmrc vat department. In case your organization be a partnership, a company, a trust, a charity, or any other kind of organization then you can download the applicable vat application but will need to print it out in your end, fill it up and dispatch it physically to hmrc.
In the event the hmrc vat department does not have any additional queries upon receiving the application then you can certainly expect your vat certificate to reach within one month. Thus, if you want to receive your vat registration without any hiccups then you should hire a vat agent who has knowledge of uk vat and even 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.
If you import services or goods from other eu countries that have already charged you vat on the same then you will again want to make a vat refund application to recoup that double-taxed amount. Again, your vat agent would be able to make the necessary vat applications for vat refunds within the stipulated time. This helps redirect vital funds back into your business. Since all applications associated with vat tend to be of time-bound nature, it is important that you file them within the stipulated time period.
If you want to charge vat to the clients then you will have to make an application for vat registration to the hmrc once your business becomes entitled to such a move get the facts. You must enrol the help of an expert vat agent so your vat application qualifies instantly and your vat registration and future vat refunds are awarded without any problems.