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 make an application for registration for vat to turn into a vat registered trader Vatcheck.com. Once you are a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby lower your costs and also enhance your business cash flow.
Several eu countries like the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing products or services. Vat is thus followed even while trading between member eu countries. In case you have started a new business in the United Kingdom and also have touched ?70,000 pounds in taxable sales during the past 1 year 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 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, once you apply for vat registration your costs could increase slightly, and if you sell your goods and services locally in the UK at the retail level then you may choose to remain outside vat should you only sell vat exempt goods. However, if you try to artificially try to separate your enterprise activities only 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 several advantages of entering the vat system as it will prevents the problem of double taxation by allowing you to reclaim vat already paid on goods or services overseas too.
The whole process for registration for vat is quite simple however, if you aren’t sure about yourself then you should simply appoint an expert vat agent to handle all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You are able to apply for vat using your vat agent too provided you inform the department of your choosing. Once you make an application for vat registration then the process of approving the application usually takes between 10 to 30 days. Until then you can keep issuing regular invoices to your clients. However, during that period you will have to take into account applicable vat rates and re-issue those invoices issued after your application so your clients can reclaim vat from other end.
Once your application is approved then you will receive your unique vat registration number and can need 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 top. You will have to give a summary of all vat paid and collected within your vat returns that will have to be filed periodically as needed by the hmrc vat department. If you have already paid vat on products or services in another eu country then you can 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 want to turn into a vat registered trader in the United Kingdom. You can easily fill up the web based vat registration form and submit it to the hmrc vat department when you make an application for registration for vat.