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

If you’re a trader in the UK with rising taxable sales then you need to pay uk vat to relish all benefits provided by this taxation system http://vatcheck.com. As soon as your taxable sales touch the vat threshold limit of ?70,000 during the past 12 months then you’ll need to apply for vat registration in order that you can also end up part of this tax system that’s in effect in the majority of European countries.

If you are a really small trader that mostly sells retail goods then you can 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, if your sales touch that figure or let’s say you sell goods to vat registered traders then you would be better off being a vat registered trader in the United Kingdom. Vat continues to be employed as a means of collecting taxes on goods and services in most of Europe as well as the UK too follows this system. The vat department in the United Kingdom is headed by HM Revenue and Customs or hmrc department.

After you have crossed over the vat threshold limit for uk VAT then you’ll have to make an application for vat registration. That can be done even before you reach this limit if you think that you need to reclaim vat that has already been paid on goods and services, specifically in a different eu country where this method is followed. You should do the hiring of experienced vat agent well conversed in uk and eu vat rules for vat registration purposes as well as for filing of vat refunds so that there aren’t any problems in claiming back vat.

Once you do turn into a vat registered trader in the United Kingdom, which could take up to 30 days once you file an online vat application then you will need to charge vat according to the 14,000 services and goods classifications provided by the hmrc vat department. This will 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%, and the zero vat rate. Certain goods and services are totally vat exempt too.

Once 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 on a regular basis. Again, your vat agent is going to be required to calculate vat to be paid or refunded based on your vat purchases and sales. If you have imported goods or services in the UK 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 as well as the member country. Overall, vat is a good tax system to avoid double taxation and also plug many loopholes which were found in the conventional sales tax system.

If you’re a growing trader in the United Kingdom 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 reduce your tax overheads to a large extent.