Apply for registration for vat to turn into a vat registered trader

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 apply for registration for vat to turn into a vat registered trader. Once you turn into a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby decrease your costs as well as enhance 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 whilst trading between member eu http://vatvalidation.com countries. In case you have started a fresh business in the UK and also have touched ?70,000 pounds in taxable sales in the past 12 months then you can apply 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 services or goods to mostly vat registered traders. Vat registration can be achieved as being an individual, partnership, company, trust, etc as deemed fit by the hmrc department.

However, once you make an application for vat registration your costs could increase slightly, and if you sell your products or services locally in the United Kingdom at the retail level then you may choose to remain outside of vat if you only sell vat exempt goods. However, if you try to artificially make an effort to separate your business activities simply to remain away from system of vat then the hmrc vat department may not take your actions lightly in case you are discovered doing precisely the same. There are many benefits of entering the vat system as it will prevents the problem of double taxation by permitting you to definitely reclaim vat already paid on services or goods overseas too.

The entire process for registration for vat is pretty simple but if you aren't sure about yourself then you should simply appoint a professional vat agent to deal with all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You can make an application for vat using your vat agent too provided you inform the department of your choice. As soon as you apply for vat registration then the procedure for approving the 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 the application so that your clients can reclaim vat from their end.

As soon as your application is eligible then you will receive your distinct vat registration number and will have to display it on all vat documents as well as your vat invoices, vat returns, and vat refunds. You will also have to issue a vat invoice that separately shows all vat rates applied in the invoice together with your vat no at the 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 needed by the hmrc vat department. In case you have already paid vat on products or services in another eu country then you can certainly try for vat reclaim once you are an official vat registered trader.

Vat registration is a simple online process that needs to be done first if you want to turn into a vat registered trader in the UK. You can simply fill up the online vat registration form and submit it to the hmrc vat department whenever you apply for registration for vat.