For selling to to vat registered traders it seems sensible to register for vat

If you’re a trader in the UK or other EU country which has adopted or vat as a way of collecting taxes then for selling to vat registered traders it makes sense to sign up for vat. You will be able to give on vat benefits to your customers while also having the ability to reclaim vat that may have previously been paid in another country.

In the United Kingdom you can register as being a vat registered trader regardless of whether you are an individual running a business, a partnership, a club, an organization, an association, or any other kind of organisation. Basically, if you are dealing in goods or services that attract vat then you can get registered for vat. Additionally, if your main customers are vat registered dealers then it definitely is a good idea that you continue the vat tax chain and turn a vat registered dealer.

In case your taxable sales cross over the vat threshold limit of ?70,000 in the last 12 months then you’re entitled to vat registration. However, you can even volunteer to obtain registered for vat before crossing the threshold limit too. Vat is an excellent way of taxing products or services so as to prevent the problem of double taxation as well as create transparency within the tax system. If you are planning to import goods or services into the UK and then sell them locally then you can also make an application for vat refunds as soon as you become an official vat registered trader. You will need to apply to the HM revenue and customs department or the hmrc department, which inturn will forward your refund application to the concerned eu country.

Once you sign up for vat with the hmrc department and turn into an official vat registered dealer then you will need to issue a vat invoice that’s been specified by hmrc. You will need to mention your vat number, vat rate and vat amount within the invoice. UK has 3 types of vat rates with the standard rates at 17.5%, reduced vat rates at 5% and zero vat rates. Some goods and services having a social impact are usually vat exempt. You’ll first need to check as to which vat rate pertains to each product or service before you start issuing vat invoices and begin charging the applicable rates.

The vat rules in different eu countries that have adopted vat are slightly different and if you plan to import goods from such countries then you will want to understand far more than simply what exactly is vat. An expert vat agent with sufficient knowledge of customs and excise duties that also knows information about uk vat and eu vat rules ought to be hired for smooth import of goods and services to the UK. Once you are a vat registered dealer then you will also need to file vat returns at the hmrc specified periods. In case you deal in vat exempted goods you will be unable to claim any vat refunds.

The hmrc offers vat registered dealers a chance to file their vat returns online itself. Your agent may also file the return for you. However, before you become a part of the vat cycle you have to first sign up for vat so that you too can enjoy all tax benefits offered by this tax system.