If you are a trader in the UK with rising sales or wish to voluntarily enter into the VAT tax system you’ll need uk vat registration if you wish to charge or reclaim vat. Once you turn into a uk vat registered trader then you can start charging vat or value added tax to the clients and also reclaim previously paid vat on goods and services, even if paid in another eu country.
Just like most other countries inside the European Union such as Greece, Spain, Poland, Sweden, Germany, Italy, etc, Britain too embraced the system of vat as a means of taxing goods and services. If your business is www.vatregistrationnumber.com quite small and your end-clients are individuals that don’t need vat invoices you would then be better off by remaining outside of the scope of vat as this will lower your costs. However, once your taxable sales cross ?70,000 in the earlier Yr then you will need to register for vat unless you deal only in vat exempt goods or services.
On the flip side, in case your clients would like you to charge vat for them to enable them to offset it against their sales you’ll be able to apply for vat registration even before the vat threshold limit has been achieved. You can apply for uk vat registration as being an individual, partnership, company, club, association, charity, etc dependant upon the nature of your business. You will have to apply online for registration to your HM Revenue and Customs department or hmrc department provided you meet all criteria posed by them.
In case you import taxable goods from other eu and non-eu countries to sell them locally, re-export goods or services outside of the UK, or even buy goods locally to resell them, then you will need to get vat registered in the UK, especially if you have crossed across the vat threshold limit. You are able to apply for online vat application only if you use VAT 1 form, which happens to be for small businesses run by individuals. All other registration forms can be downloaded but will have to be filled manually before being dispatched to the hmrc vat department for processing. You should get your vat number within 1 month of applying, provided all your documents are in order.
You will be in a position to issue a vat invoice against each sale and also will need to specify vat rates against each product or service. Additionally, you will need to file vat returns as decided by the hmrc department. However, if you have already paid vat on goods and services, even if they were paid in another eu country you will be able to file for vat refund and receive that amount back to your account. This feature will help enhance your business cash-flow while also reducing your product or services costs. Should you have difficulty in understanding uk vat and eu vat rules then an expert vat agent may help solve all of your problems related to vat returns and vat refunds so your business continues growing without taxation hiccups.
If your organization is poised to break over the vat threshold limit of ?70,000 in taxable sales then you’ll have to turn over a vat registered trader. However, this is a relocation in the correct direction since once you complete your uk vat registration process and turn into a vat registered trader you will then be able to claim for vat refunds and infuse those funds in your business.