In case you have crossed the threshold limit or wish 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 https://vatcheck.com. Once you are a vat registered trader then you will be empowered to reclaim vat paid in another eu country and thereby lower your costs and also enhance your business cash flow.
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 new business in the United Kingdom and also have touched ?70,000 pounds in taxable sales during the past 1 year 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 done as being an individual, partnership, company, trust, etc as deemed fit by the hmrc department.
However, as soon as you make an application for vat registration then your costs could increase slightly, and if you sell your goods and services locally in the United Kingdom at a retail level then you may choose to remain outside of vat should you only sell vat exempt goods. However, if you try to artificially try to separate your enterprise activities only to remain away from system of vat then this hmrc vat department may not take your actions lightly in case you are discovered doing precisely the same. There are many advantages of entering the vat system as it will avoid the problem of double taxation by permitting you to reclaim vat already paid on services or goods overseas too.
The entire process for registration for vat is pretty simple but if you are not sure about yourself then you definitely 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 are able to apply for vat through your vat agent too provided you inform the department of your choice. Once you apply for vat registration then this process of approving the application usually takes between 10 to 30 days. Until then you can continue issuing regular invoices to your clients. However, during that period you will have to factor in applicable vat rates and re-issue those invoices issued after the application so your clients can reclaim vat from other end.
Once your application is approved then you will receive your unique vat registration number and will need to display it on all vat documents including your vat invoices, vat returns, and vat refunds. You will probably need 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 summary of all vat paid and collected in your vat returns which will have to be filed periodically as needed by the hmrc vat department. If 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 has to be done first if you wish to turn into a vat registered trader in the United Kingdom. You can easily fill the online vat registration form and submit it to the hmrc vat department when you apply for registration for vat.