If you have crossed the threshold limit or want to become 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 Http://vatcheck.com. When you finally turn into a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby decrease 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 goods and services. Vat is thus followed even while trading between member eu countries. If you have started a new business in the United Kingdom and also have touched ?70,000 pounds in taxable sales during the past 1 year then you can definitely 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 apply for vat registration 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 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 several advantages of entering the vat system as it will avoid the problem of double taxation by allowing you to reclaim vat already paid on services or goods overseas too.
The whole process for registration for vat is pretty simple however, if you aren’t sure about yourself then you should simply appoint an expert 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 through your vat agent too provided you inform the department of your choice. As soon as you make an application for vat registration then the process of 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 including 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 the invoice along with your vat no at the top. You will have to give a summary of all vat paid and collected within your vat returns that will need to be filed periodically as required by the hmrc vat department. If 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 procedure that has to be done first if you wish to turn into a vat registered trader in the United Kingdom. You can simply fill up the online vat registration form and submit it to the hmrc vat department whenever you apply for registration for vat.