If you are planning to market goods or services in the UK then you definitely might soon have to turn into a VAT registered trader and to achieve it you will have to make a vat application for vat registration and vat refunds in the future. It is however, important that you get the application right to begin with for seamless integration into the vat tax system.
Great Britain along with most of the eu countries have shifted to vat or value added tax for taxing services and goods available in their respective countries or even re-exported out of those countries. If your trading business deals in a quite small scale to individual end-users then you might not have to register for vat since this will allow you to keep your costs at a lower level. However, when your sales touch the vat threshold limit of 70,000 sterling pounds in the previous 12 months or if you think that this figure could be achieved within the coming 30 days then you will have to make an application for vat registration.
In the UK all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. In case your sales have reached the vat threshold limit or if you feel that you need to issue vat invoices to all your customers then you should make an application for vat certification to the hmrc. It is possible to do so by making a web-based application, especially if you are an individual running your individual business. You can simply fill up a vat form referred to as VAT 1 online and submit it online to hmrc vat department. In case your organization be a partnership, a company, a trust, a charity, or any other type of organization you may download the applicable vat application form but will have to print it at your end, fill it up and dispatch it physically to hmrc.
If the hmrc vat department does not have any additional queries upon receiving your application then you can certainly expect your vat certificate to reach within one month. Thus, if you wish to receive your vat registration with no hiccups then you should hire a vat agent that has expertise in uk vat as well as eu vat systems to ensure that there’s complete adherence to all vat rules. Your vat agent can also guide you during filing of vat returns.
If you import services or goods from other eu countries which have already charged you vat on the same then you’ll again want to make a vat refund application to recover that double-taxed amount. Again, your vat agent would be able to make the necessary vat applications for vat refunds within the stipulated time. This helps redirect vital funds directly into your business. Since all applications associated with vat tend to be of time-bound nature, it is important you file them well within the stipulated time period.
If you want to charge vat to your clients then you will have to make an application for vat registration to the hmrc once your business becomes eligible for such a move. You should enrol the aid of a professional vat agent so your vat application is approved instantly and your vat registration and future vat refunds are awarded without any problems.