If you are planning to sell services or goods in the UK then you definitely might soon have to turn into a VAT registered trader in order to achieve it you will have to make a vat application for vat registration and vat refunds in the future. It really is however, important that you get your application right the first time around for seamless integration to the vat tax system.
The UK along with most of the eu countries have shifted over to vat or value added tax for taxing goods and services available in their respective countries or even re-exported from those countries. If your trading business deals at a quite modest scale to individual end-users you then might not have to sign up for vat since this will let you keep the costs in 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 feel that this figure might be achieved in the coming 30 days then you’ll have to apply for vat registration.
In Britain all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. If your sales have reached the vat threshold limit or if you think that you have 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 a person running your own business. You can simply fill 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 kind of organization you may download the applicable vat application form but will need to print it in your end, fill it up and dispatch it physically to hmrc.
If the hmrc vat department does not have any additional queries upon receiving the application then you can certainly expect your vat certificate to arrive within 30 days. Thus, if you want to receive your vat registration with no hiccups then you should hire a vat agent that has expertise in uk vat and even eu vat systems to ensure that there is complete adherence to all vat rules. Your vat agent can also guide you during filing of vat returns.
If you import goods or services from other eu countries which have already charged you vat on the same then you’ll again need to make a vat refund application to recoup that double-taxed amount. Again, your vat agent can make necessary vat applications for vat refunds within the stipulated time. This will help redirect vital funds back into your enterprise. Since all applications related to vat usually are of time-bound nature, it is crucial you file them well within the stipulated time period.
If you would like charge vat to your clients then you will have to make an application for vat registration to the hmrc as soon as your business becomes eligible for such a move. You must enrol the help of a professional vat agent so that your vat application is approved instantly and your vat registration and future vat refunds are awarded without problems.