In case you have crossed the threshold limit or want to become 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. Once you are a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby decrease your costs and also improve your business earnings.
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 fresh business in the United Kingdom and have touched ?70,000 pounds in taxable sales during the past https://vatregistrationnumber.com 12 months then you can definitely make an application 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 goods or services to mostly vat registered traders. Vat registration can be achieved as an individual, partnership, company, trust, etc as deemed fit by the hmrc department.
However, once you apply for vat registration then your costs could increase slightly, and if you sell your goods and services locally in the United Kingdom at the retail level then you could choose to remain outside of vat should you only sell vat exempt goods. However, if you try to artificially make an effort to separate your enterprise activities only to remain away from system of vat then the hmrc vat department may not take your actions lightly if you’re discovered doing precisely the same. There are several benefits of entering the vat system since it will prevents the problem of double taxation by allowing you to reclaim vat already paid on goods or services in another country too.
The whole process for registration for vat is quite simple but if you are not 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 through your vat agent too provided you inform the department of your choosing. As soon as you apply for vat registration then the procedure for approving your application typically takes between 10 to 30 days. Fo the time being you can continue issuing regular invoices to your clients. However, in that period you will have to factor in 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 eligible you will receive your unique vat registration number and may have to display it on all vat documents as well as your vat invoices, vat returns, and vat refunds. You will probably have to issue a vat invoice that separately shows all vat rates applied in that invoice along with your vat no at the very top. You will have to provide a breakdown of all vat paid and collected within your vat returns which will need to be filed periodically as required by the hmrc vat department. If you have already paid vat on goods and services in another eu country then you can try for vat reclaim once you’re a certified vat registered trader.
Vat registration is a simple online process that needs to be done first if you wish to turn into a vat registered trader in the United Kingdom. You can simply fill the web based vat registration form and submit it to your hmrc vat department whenever you make an application for registration for vat.