If you're a trader in Britain with rising sales or wish to voluntarily enter the VAT tax system you'll need uk vat registration if you wish to charge or reclaim vat. As soon as you are a uk vat registered trader then you can start charging vat or value added tax to your clients and even reclaim previously paid vat on goods and services, even when paid in another eu country.
Just like other countries inside the EU such as Greece, Spain, Poland, Sweden, Germany, Italy, etc, the UK too embraced the system of vat as a means of taxing goods and services. In case your business is http://vatregistrationnumber.com quite small and your end-clients are people who don't need vat invoices then you would be better off by remaining outside the scope of vat as this will lower your costs. However, when your taxable sales cross ?70,000 in the previous 12 months then you will have to register for vat unless you deal only in vat exempt services or goods.
On the flip side, in case your clients would like you to charge vat to them to enable them to offset it against their sales then you can make an application for vat registration before the vat threshold limit has been achieved. You can make an application for uk vat registration as an individual, partnership, company, club, association, charity, etc dependant upon the nature of your business. You will need to apply online for registration to the HM Revenue and Customs department or hmrc department provided you meet all criteria presented by them.
If you import taxable goods from other eu and non-eu countries to sell them locally, re-export goods or services outside the UK, or even buy goods locally to resell them, then you will need to get vat registered in Britain, particularly if you have crossed across the vat threshold limit. You are able to apply for online vat application only if you use VAT 1 form, which happens to be for small enterprises run by individuals. All other registration forms is available but will have to be filled manually before being dispatched to the hmrc vat department for processing. You need to get your vat number within 1 month of applying, provided all your documents are in order.
You will be in a position to issue a vat invoice against each sale and will also need to specify vat rates against each product or service. You will also need to file vat returns as decided by the hmrc department. However, if you have already paid vat on services and goods, even if these were paid in another eu country you will be able to file for vat refund and receive that amount back to your bank account. This feature might help enhance your business cash-flow whilst reducing your product or services costs. In case you have difficulty in understanding uk vat and eu vat rules then a professional vat agent may help solve all of your problems related to vat returns and vat refunds so your business keeps on growing without taxation hiccups.
In case your organization is poised to break over the vat threshold limit of ?70,000 in taxable sales then you will have to turn over a vat registered trader. However, this is a move in the right direction since when you complete your uk vat registration process and turn a vat registered trader you will then be able to claim for vat refunds and infuse that money into your business.
