If you plan to sell services or goods in Britain then you definitely might soon need to turn into a VAT registered trader and to achieve it you will need to make a vat application for vat registration and vat refunds in the future. It really is however, essential that you get your application right the first time around for seamless integration to the vat tax system.
The UK together with the majority of the eu countries have shifted over to vat or value added tax for taxing goods and services sold in their respective countries or even re-exported from those countries. If your trading business deals at a very modest scale to individual end-users then you may not need to sign up for vat simply because this vatvalidation will allow you to keep your costs at a lower level. However, once your sales touch the vat threshold limit of 70,000 sterling pounds in the previous 12 months or if you think that this figure could be achieved in the coming 30 days then you’ll have to make an application for vat registration.
In the UK 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 feel that you have to issue vat invoices to any or all your clients then you definitely should make an application for vat certification to the hmrc. It is possible to do so by making an online application, particularly if you are a person running your individual business. You can simply fill up a vat form known as VAT 1 online and submit it online to hmrc vat department. Should your organization be a partnership, a company, a trust, a charity, or any other type of organization then you can download the applicable vat application form but will need to print it at your end, fill it up and dispatch it physically to hmrc.
If the hmrc vat department doesn’t have any additional queries upon receiving your application then you can expect your vat certificate to arrive within one month. Thus, if you wish to receive your vat registration without any hiccups then you should hire a vat agent who has knowledge of uk vat as well as eu vat systems so that there’s complete adherence to all vat rules. Your vat agent may also guide you during filing of vat returns.
Should you import goods or services from other eu countries that 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 directly into your enterprise. Since all applications related to vat tend to be of time-bound nature, it is crucial you file them well within the stipulated time frame.
If you would like charge vat to the clients then you will have to make an application for vat registration to the hmrc once your business becomes entitled to this kind of move. You should 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.