If you are planning to sell services or goods in the UK then you might soon have to turn into a VAT registered trader and to achieve it you will have to make a vat application for vat registration and vat refunds in the foreseeable future. It really is however, important that you get the application right the first time around for seamless integration into the vat tax system.
The UK together with most of the eu countries have shifted over to vat or value added tax for taxing services and goods sold in their respective countries and even re-exported from those countries. If your trading business deals at a very small scale to individual end-users you then might not have to sign up for vat since this will let you keep your costs at a lower level. However, when your sales touch the vat threshold limit of 70,000 sterling pounds in the previous Yr or if you feel that this figure might be achieved within the coming 1 month then you will have to apply for vat registration.
In the UK all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. In case your sales have reached the vat threshold limit or if you think that you have to issue vat invoices to any or all your clients then you should make an application for vat certification to the hmrc. It is possible to do so by making an online application, especially if you are a person running your individual business. You can simply fill a vat form known as VAT 1 online and submit it online to hmrc vat department. Should your organization be a partnership, a company, a trust, a charity, or any other kind of organization you may download the applicable vat application form but will need to print it out in your end, fill it up and dispatch it physically to hmrc.
In the event the hmrc vat department does not have any additional queries upon receiving your application then you can expect your vat certificate to reach within one month. Thus, if you want to receive your vat registration with no hiccups then you should hire a vat agent that has knowledge of uk vat and even eu vat systems to ensure that there’s complete adherence to all vat rules. Your vat agent can also guide you during filing of vat returns.
Should you import services or goods from other eu countries that have already charged you vat on the same then you’ll again want to make a vat refund application to recoup that double-taxed amount. Again, your vat agent can make necessary vat applications for vat refunds in the stipulated time. This will help redirect vital funds directly into your business. Since all applications associated with vat usually are of time-bound nature, it is crucial you file them within the stipulated time frame.
If you would like charge vat to your clients then you will have to make an application for vat registration to the hmrc once your business becomes entitled to such a move. You should enrol the aid of an expert vat agent so that your vat application is approved instantly and your vat registration and future vat refunds are awarded without problems.