Pay uk vat to enjoy all benefits offered by this taxation system

If you’re a trader in the UK with rising taxable sales then you need to pay uk vat to enjoy all benefits offered by this taxation system. As soon as your taxable sales touch the vat threshold limit of ?70,000 in the past 12 months then you need to get vat registration so that you too can become part of this tax system that is in force in most European countries.

If you are a very small trader that mostly sells retail goods you’ll be able to remain out of the purview of vat or value added tax as long as your taxable sales don’t touch ?70,000 in 12 months. However, if your sales touch that figure or let’s say you sell goods to vat registered traders you would be better off being a vat registered trader in the United Kingdom. Vat continues to be employed as a way of collecting taxes on goods and services in most of Europe and the UK too follows this method. The vat department in the UK is headed by HM Revenue and Customs or hmrc department.

After you have crossed over the vat threshold limit for uk vat number search then you’ll have to apply for vat registration. You can do so before you reach this limit if you feel that you have to reclaim vat which has already been paid on services and goods, specifically in a different eu country where this system is followed. You ought to hire the services of an experienced vat agent well conversed in uk and eu vat rules for vat registration purposes as well as for filing of vat refunds to ensure that there are no problems in claiming back vat.

Once you do turn into a vat registered trader in the United Kingdom, which may extend to a month once you file a web-based vat application then you’ll have to charge vat according to the 14,000 goods and services classifications given by the hmrc vat department. This will need to be done through each vat invoice you will be required to issue during each taxable sale. UK has 3 vat rates starting with the regular rate of 17.5%, reduced vat rate of 5%, and the zero vat rate. Certain services and goods are totally vat exempt too.

Once you turn into a vat registered trader so as to pay and collect uk vat determined by vat invoices then you’ll also need to file your vat returns on a regular basis. Again, your vat agent is going to be required to calculate vat to be paid or refunded depending on your vat purchases and sales. In case you have imported goods or services in the UK after paying vat within a eu country then you can avoid double taxation by filing a vat reclaim form. You will be awarded vat refund between four to 8 months after your claim is successfully processed by hmrc and the member country. Overall, vat is an excellent tax system to avoid double taxation as well as plug many loopholes that were present in the traditional sales tax system.

If you’re a growing trader in the United Kingdom that sells taxable goods to vat registered traders then you will want to maintain the cycle of vat alive by getting to be a vat registered trader. Now you can collect and pay uk vat while also claiming any vat previously paid on imported goods and services, which will will lower tax overheads to some large extent.