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

If you’re a trader in the United Kingdom with rising taxable sales then you need to pay uk vat to enjoy all benefits offered by this taxation system. Once your taxable sales touch the vat threshold limit of ?70,000 in the past Twelve months then you need to get vat registration in order that you can also end up part of this tax system that’s in force in the majority of Europe.

If you’re 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 so long as your taxable sales do not touch ?70,000 in Twelve months. However, in case your sales touch that figure or if you sell goods to vat registered traders you would be better off being a vat registered trader in the UK. Vat has been employed as a means of collecting taxes on goods and services in most of Europe and the UK too follows this system. The vat department in the United Kingdom is headed by HM Revenue and Customs or hmrc department.

Once you have crossed over the vat threshold limit for uk vatcontrol.com then you will have to make an application for vat registration. You can do so before you reach this limit if you think that you need to reclaim vat that has already been paid on services and goods, specifically in a different eu country where this method is followed. You should 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.

As soon as you do turn into a vat registered trader in the UK, which may take up to a month once you file an online vat application then you will need to charge vat as per the 14,000 services and goods classifications given by the hmrc vat department. This will likely need to be done through each vat invoice that you will be required to issue during each taxable sale. UK has 3 vat rates beginning with the standard rate of 17.5%, reduced vat rate of 5%, as well as the zero vat rate. Certain services and goods are totally vat exempt too.

As soon as you are a vat registered trader so as to pay and collect uk vat based on vat invoices then you will also need to file your vat returns regularly. 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 United Kingdom after paying vat in a eu country then you can definitely 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 a good tax system to prevent double taxation and also plug many loopholes that were found in the conventional sales tax system.

If you are a growing trader in the UK that sells taxable goods to vat registered traders then you need to keep the cycle of vat alive by turning into 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 in turn will lower tax overheads to some large extent.