In case you have crossed the threshold limit or want to be a part of the vat or value added tax system then you’ll need to make an application for registration for vat to turn into a vat registered trader. When you finally 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 enhance your business cash flow.
Several eu countries like the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing goods and services. Vat is thus followed even while trading between member eu 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 1 year then you can definitely make an application for www.vatregistrationnumber.com vat registration with the HM Revenue and Customs or hmrc department. You can even apply before this threshold limit is achieved if you sell your services or goods 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, as soon as you make an application for vat registration your costs could increase slightly, and when you sell your products or services locally in the United Kingdom at a retail level then you could choose to remain outside vat if you only sell vat exempt goods. However, if you try to artificially try to separate your business activities simply to remain away from system of vat then this hmrc vat department might not take your actions lightly in case you are discovered doing precisely the same. There are many benefits of entering the vat system since it will prevents the problem of double taxation by permitting you to reclaim vat already paid on services or goods in another country too.
The entire process for registration for vat is quite simple but if you aren’t 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 can apply for vat through your vat agent too provided you inform the department of your choosing. Once you apply for vat registration then this process of approving the application typically takes between 10 to 30 days. Fo the time being you can continue issuing regular invoices to your clients. However, during that period you will need to take into account applicable vat rates and re-issue those invoices issued after the application so your clients can reclaim vat from other end.
As soon as your application is eligible then you will receive your unique vat registration number and can have 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 need to provide a summary of all vat paid and collected in your vat returns that 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 apply for vat reclaim once you’re an official vat registered trader.
Vat registration is a straightforward online procedure that needs to be done first if you wish to turn into a vat registered trader in the UK. You can simply fill up the online vat registration form and submit it to your hmrc vat department whenever you make an application for registration for vat.