Pay uk vat to relish all benefits provided by this taxation system

 

If you’re a trader in the United Kingdom with rising taxable sales then you need to pay uk vat to enjoy all benefits offered by this taxation system. As soon as your taxable sales touch the vat threshold limit of ?70,000 during the past 12 months then you’ll need to apply for vat registration in order that you too can become part of this tax system that is in force in the majority of European countries.

If you’re a very small trader that mostly sells retail goods then you can remain from the purview of vat or value added tax as long as your taxable sales do not touch ?70,000 in 12 months. However, in case your sales touch that figure or if you sell goods to vat registered traders you would be better off being a vat registered trader in the United Kingdom. Vat has been employed as a way of collecting taxes on products or services in most of Europe as well as the UK too follows this method. The vat department in the United Kingdom is headed by HM Revenue and Customs or hmrc department.

After you have crossed over the vat threshold limit for uk vatcontrol.com then you will have to apply for vat registration. That can be done even before you reach this limit if you feel that you have to reclaim vat which has previously been paid on services and goods, especially in a foreign eu country where this method is followed. You should do the hiring of experienced vat agent well conversed in uk and eu vat rules for vat registration purposes and for filing of vat refunds so that there aren’t any problems in claiming back vat.

Once you do turn into a vat registered trader in the United Kingdom, which could take up to 30 days after you file an online vat application then you will have to charge vat according to the 14,000 services and goods classifications given by the hmrc vat department. This will have to be carried out by each vat invoice you will be needed to issue during each taxable sale. UK has 3 vat rates starting with the standard rate of 17.5%, reduced vat rate of 5%, and the zero vat rate. Certain services and goods are totally vat exempt too.

 

As soon as you turn into a vat registered trader in order to pay and collect uk vat based on vat invoices then you’ll also need to file your vat returns on a regular basis. Again, your vat agent is going to be necessary to calculate vat to get paid or refunded based on your vat purchases and sales. In case you have imported goods or services in the UK after paying vat in a eu country then you can definitely avoid double taxation by filing a vat reclaim form. You will be awarded vat refund between four to eight months after your claim is successfully processed by hmrc and the member country. Overall, vat is an excellent tax system to avoid double taxation as well as plug many loopholes that were found in the conventional sales tax system.

If you are a growing trader in the United Kingdom that sells taxable goods to vat registered traders then you will want to maintain the cycle of vat alive by getting to be a vat registered trader. Now you can collect and pay uk vat whilst claiming any vat previously paid on imported goods and services, which in turn will reduce your tax overheads to a large extent.