In case you have crossed the threshold limit or wish to be a part of the vat or value added tax system then you will need to apply for registration for vat to turn into a vat registered trader www.vatcheck.com. When you finally turn into a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby lower your costs as well as improve your business cash flow.
Several eu countries like the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing goods and services. Vat is thus followed even while trading between member eu countries. If you have started a fresh business in the United Kingdom and also have touched ?70,000 pounds in taxable sales in the past 1 year then you can make an application for vat registration with the HM Revenue and Customs or hmrc department. You can even apply before this threshold limit is achieved if you sell your goods or services to mostly vat registered traders. Vat registration can be done as an individual, partnership, company, trust, etc as deemed fit by the hmrc department.
However, once you make an application for vat registration then your costs could increase slightly, and when you sell your goods and services locally in the UK at a retail level then you could choose to remain outside vat if you only sell vat exempt goods. However, if you try to artificially try to separate your business activities only to remain outside the system of vat then this hmrc vat department may not take your actions lightly if you’re discovered doing the same. There are many benefits of entering the vat system since it will prevents the problem of double taxation by allowing you to definitely reclaim vat already paid on services or goods overseas too.
The whole process for registration for vat is quite simple however, if you aren’t sure about yourself then you definitely should simply appoint a professional vat agent to deal with all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You can apply for vat through your vat agent too provided you inform the department of your choosing. Once you apply for vat registration then the process of approving your application typically takes between 10 to 30 days. Fo the time being you can continue issuing regular invoices to your clients. However, in that period you will have to factor in applicable vat rates and re-issue those invoices issued after your application so your clients can reclaim vat from other end.
Once your application is eligible then you will receive your distinct vat registration number and can have to display it on all vat documents including your vat invoices, vat returns, and vat refunds. You will also have to issue a vat invoice that separately shows all vat rates applied in the invoice along with your vat no at the very top. You will have to give a summary of all vat paid and collected in your vat returns that will have to be filed periodically as needed by the hmrc vat department. If you have already paid vat on products or services in another eu country then you can certainly apply for vat reclaim once you’re a certified vat registered trader.
Vat registration is a straightforward online process that has to be done first if you want to turn into a vat registered trader in the United Kingdom. You can easily fill the web based vat registration form and submit it to the hmrc vat department whenever you apply for registration for vat.