If you’re a trader in the UK with rising sales or wish to voluntarily enter into the VAT tax system then you need uk vat registration if you wish to charge or reclaim vat. Once you are a uk vat registered trader you’ll be able to start charging vat or value added tax to the clients and even reclaim previously paid vat on goods and services, even if paid in another eu country.
Much like most other countries in the EU like Greece, Spain, Poland, Sweden, Germany, Italy, etc, the UK too embraced the system of vat as a means of taxing goods and services. If your business is vatregistrationnumber.com quite small , your end-clients are people who do not need vat invoices then you would be better off by remaining outside of the scope of vat as this will reduce your costs. However, when your taxable sales cross ?70,000 in the previous Yr then you will need to register for vat unless you deal only in vat exempt services or goods.
On the other hand, in case your clients want 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 make an application for uk vat registration as an individual, partnership, company, club, association, charity, etc dependant upon the nature of your business. You will have to apply online for registration to the HM Revenue and Customs department or hmrc department provided you meet all criteria presented by them.
In case you import taxable goods from other eu and non-eu countries to market them locally, re-export goods or services outside of the UK, as well as buy goods locally to resell them, then you’ll need to get vat registered in Britain, especially if you have crossed over the vat threshold limit. You can apply for online vat application only when you utilize VAT 1 form, which happens to be for small businesses run by individuals. Other registration forms can be downloaded but will have to be filled manually before being dispatched to the hmrc vat department for processing. You need to get your vat number within 1 month of applying, provided all your documents are typically in order.
You may be able to issue a vat invoice against each sale and will also need to specify vat rates against each goods and services. Additionally, you will need to file vat returns as decided by the hmrc department. However, in case you have already paid vat on services and goods, even if these were paid in another eu country you will now be in a position to apply for vat refund and receive that amount back into your account. This feature will help enhance your business cash-flow while also lowering your product or services costs. Should you have difficulty in understanding uk vat and eu vat rules then a professional vat agent could help solve all your problems related to vat returns and vat refunds so that your business keeps on growing without any taxation hiccups.
If your business is poised to sneak over the vat threshold limit of ?70,000 in taxable sales then you will need 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 a vat registered trader you will then be able to claim for vat refunds and infuse that money into your business.