Pay uk vat to relish all benefits offered by this taxation system

If you are a trader in the UK with rising taxable sales you will need to pay uk vat to enjoy all benefits provided by this taxation system. As soon as your taxable sales touch the vat threshold limit of ?70,000 in the past Twelve months then you’ll need to apply for vat registration so that you too can become part of this tax system that’s in force in most Europe.

If you are a really small trader that mostly sells retail goods then you can remain from the purview of vat or value added tax as 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 you would be better off being a vat registered trader in the United Kingdom. Vat has been employed as a way of collecting taxes on products or services in the majority of 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 vatnumbersearch then you will need to make an application for vat registration. That can be done before you reach this limit if you feel that you need to reclaim vat which has previously been paid on services and goods, especially in a foreign eu country where this method is followed. You ought to hire the services of experienced vat agent well conversed in uk and eu vat rules for vat registration purposes and for filing of vat refunds to ensure that there aren’t any problems in claiming back vat.

As soon as you do turn into a vat registered trader in the UK, which could take up to 30 days after you file a web-based vat application then you’ll have to charge vat according to the 14,000 services and goods classifications provided by the hmrc vat department. This will have to be done through each vat invoice that you will be needed to issue during each taxable sale. UK has 3 vat rates starting with the regular rate of 17.5%, reduced vat rate of 5%, and the zero vat rate. Certain goods and services are totally vat exempt too.

As soon as you turn into a vat registered trader so as to pay and collect uk vat based on vat invoices then you’ll also need to file your vat returns regularly. Again, your vat agent is going to be necessary to calculate vat to be paid or refunded based on your vat purchases and sales. If you have imported services or goods in the UK after paying vat within a eu country then you can avoid double taxation by filing a vat reclaim form. You’ll 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 an excellent tax system to avoid double taxation as well as plug many loopholes which were present in the traditional sales tax system.

If you’re a growing trader in the UK that sells taxable goods to vat registered traders then you will want to maintain the cycle of vat alive by turning into a vat registered trader. You can now collect and pay uk vat while also claiming any vat previously paid on imported goods and services, which will will lower tax overheads to some large extent.