Pay uk vat to relish all benefits provided by this taxation system

If you’re a trader in the United Kingdom with rising taxable sales then you need to pay uk vat to relish all benefits provided by this taxation system. As soon as your taxable sales touch the vat threshold limit of ?70,000 during the past 12 months then you need to get vat registration in order that you too can become part of this tax system that is in effect in most Europe.

If you are a very small trader that mostly sells retail goods you’ll be able to remain from the purview of vat or value added tax so long as your taxable sales do not touch ?70,000 in Twelve months. However, if your sales touch that figure or let’s say you sell goods to vat registered traders then you would be better off as a vat registered trader in the UK. Vat has been employed as a means of collecting taxes on goods and services in the majority of of Europe as well as the UK too follows this system. The vat department in the UK is headed by HM Revenue and Customs or hmrc department.

Once you have crossed over the vat threshold limit for uk http://vatnumbersearch.com then you will need to apply for vat registration. You can do so before you reach this limit if you think that you have to reclaim vat which has already been paid on services and goods, specifically in a different eu country where this method is followed. You should hire the services of an experienced vat agent well conversed in uk and eu vat rules for vat registration purposes as well as for filing of vat refunds to ensure that there aren’t any problems in claiming back vat.

Once you do turn into a vat registered trader in the United Kingdom, which could take up to 30 days once you file an online vat application then you’ll have to charge vat according to the 14,000 services and goods classifications given by the hmrc vat department. This will likely have to be done through each vat invoice that you will be required to issue during each taxable sale. UK has 3 vat rates beginning with the regular rate of 17.5%, reduced vat rate of 5%, and the zero vat rate. Certain goods and services are totally vat exempt too.

As soon as you turn into a vat registered trader in order to pay and collect uk vat determined by vat invoices then you’ll also need to file your vat returns on a regular basis. Again, your vat agent will be necessary to calculate vat to get paid or refunded depending on your vat purchases and sales. In case you have imported services or goods in the UK after paying vat in a eu country then you can avoid double taxation by filing a vat reclaim form. You’ll be awarded vat refund between four to eight months after your claim is successfully processed by hmrc as well as the member country. Overall, vat is a good tax system to avoid double taxation and also plug many loopholes which were present in the conventional sales tax system.

If you’re a growing trader in the United Kingdom that sells taxable goods to vat registered traders then you need to keep the cycle of vat alive by turning into a vat registered trader. Now you can collect and pay uk vat while also claiming any vat previously paid on imported products or services, which will will reduce your tax overheads to a large extent.