For selling to to vat registered traders it seems sensible to sign up for vat

If you are a trader in the United Kingdom or other EU country which has adopted or value added tax to be a way of collecting taxes then for selling to vat registered traders it seems sensible to sign up for vat. You will be able to give on vat benefits to the customers whilst being able to reclaim vat that might have previously been paid in another country.

In the UK you can register as a vat registered trader irrespective of whether you are an individual operating a business, a partnership, a club, a company, an association, or other vatnumbers type of organisation. Basically, for anyone who is dealing in services or goods that attract vat then you can certainly get registered for vat. In addition, if most of your customers are vat registered dealers it definitely makes sense that you continue the vat tax chain and turn a vat registered dealer.

If your taxable sales go over the vat threshold limit of ?70,000 in the last Yr then you’re eligible for vat registration. However, you can also volunteer to obtain registered for vat before crossing the threshold limit too. Vat is an excellent way of taxing goods and services so as to avoid the problem of double taxation as well as create transparency within the tax system. If you are planning to import services or goods to the UK and then sell them locally then you can also apply for vat refunds once you turn into the official vat registered trader. You will have to apply at the HM revenue and customs department or the hmrc department, which inturn will forward your refund application to the concerned eu country.

Once you sign up for vat with the hmrc department and turn into an official vat registered dealer then you’ll need to issue a vat invoice that’s been specified by hmrc. You will have to mention your vat number, vat rate and vat amount on the invoice. UK has 3 types of vat rates with the standard rates at 17.5%, reduced vat rates at 5% and zero vat rates. Some goods and services having a social impact are also vat exempt. You will first have to check as to which vat rate pertains to each products or services before you begin issuing vat invoices and start charging the applicable rates.

The vat rules in several eu countries which have adopted vat are slightly different and if you intend to import goods from such countries then you will want to understand far more than merely what exactly is vat. A professional vat agent with sufficient knowledge of customs and excise duties which also knows all about uk vat and eu vat rules ought to be hired for smooth import of goods and services to the UK. As soon as you turn into a vat registered dealer then you’ll definitely also need to file vat returns at the hmrc specified periods. If you deal in vat exempted goods then you will be unable to claim any vat refunds.

The hmrc offers vat registered dealers an opportunity to file their vat returns online itself. Your agent may also file the return for you. However, before you be a part of the vat cycle you have to first sign up for vat so that you can also enjoy all tax benefits offered by this tax system.