If you have crossed the threshold limit or want to be a part of the vat or value added tax system then you will need to make an application for registration for vat to turn into a vat registered trader Vatcheck.com. Once you turn into a vat registered trader then you will be empowered to reclaim vat paid in another eu country and thereby decrease your costs and also enhance your business earnings.
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 whilst trading between member eu countries. In case you have started a fresh business in the UK and also have touched ?70,000 pounds in taxable sales during the past 12 months then you can apply for vat registration with the HM Revenue and Customs or hmrc department. You can even apply before threshold limit is achieved if you sell your goods or services to mostly vat registered traders. Vat registration can be achieved as being an individual, partnership, company, trust, etc as deemed fit by the hmrc department.
However, as soon as you apply for vat registration 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 enterprise activities simply to remain away from system of vat then the hmrc vat department may not take your actions lightly if you’re discovered doing precisely the same. There are many benefits of entering the vat system since it will prevents the problem of double taxation by allowing you to reclaim vat already paid on services or goods in another country too.
The entire process for registration for vat is quite simple but if you aren’t sure about yourself then you 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 are able to make an application for vat using your vat agent too provided you inform the department of your choice. As soon as you apply for vat registration then the process of approving the application typically 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 their end.
As soon as your application is approved you will receive your unique vat registration number and may 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 that invoice along with your vat no at the very top. You will have to provide a breakdown of all vat paid and collected in your vat returns which will need to be filed periodically as needed by the hmrc vat department. In case you have already paid vat on goods and services in another eu country then you can certainly apply for vat reclaim once you are 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 up the online vat registration form and submit it to your hmrc vat department whenever you make an application for registration for vat.