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. Once you turn into a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby decrease your costs as well as enhance your business earnings.
Several eu countries including 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. In case 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 apply for vat registration with the HM Revenue and Customs or hmrc department. You may also apply before this threshold limit is achieved if you sell your services or goods to mostly vat registered traders. Vat registration can be done as being an individual, partnership, company, trust, etc as deemed fit by the hmrc department.
However, as soon as 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 the retail level then you may opt to remain outside of vat if you only sell vat exempt goods. However, if you try to artificially try to separate your business activities simply to remain outside the system of vat then this hmrc vat department may not take your actions lightly in case you are discovered doing the same. There are many benefits of entering the vat system as it will prevents the problem of double taxation by allowing you to definitely reclaim vat already paid on services or goods in another country too.
The entire process for registration for vat is quite simple however, if you aren’t sure about yourself then you definitely should simply appoint an expert 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 choice. As soon as you apply for vat registration then this process of approving your application usually takes between 10 to 30 days. Fo the time being you can keep issuing regular invoices to your clients. However, in that period you will have to take into account applicable vat rates and re-issue those invoices issued after your application so that your clients can reclaim vat from other end.
As soon as your application is eligible then you will receive your distinct vat registration number and can need to display it on all vat documents as well as 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 which will have to be filed periodically as required by the hmrc vat department. If you have already paid vat on goods and services in another eu country then you can apply for vat reclaim once you’re an official vat registered trader.
Vat registration is a straightforward online procedure that needs to be done first if you wish to turn into a vat registered trader in the UK. You can simply fill the online vat registration form and submit it to the hmrc vat department when you apply for registration for vat.