If you plan to sell services or goods in the UK then you might soon need to turn into a VAT registered trader in order to achieve it you will have to complete a vat application for vat registration and vat refunds in the future. It is however, important that you get your application right the first time around for seamless integration to the vat tax system.
The UK together with the majority of the eu countries have shifted over to vat or value added tax for taxing services and goods sold in their respective countries or even re-exported from those countries. In case your trading business deals in a quite modest scale to individual end-users then you might not have to sign up for vat since this vat validation will allow you to keep your costs in a lower level. However, when your sales touch the vat threshold limit of 70,000 sterling pounds in the previous 12 months or if you feel that this figure could be achieved in the coming 1 month then you’ll need to apply for vat registration.
In Britain all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. If your sales have reached the vat threshold limit or if you feel that you have to issue vat invoices to all your clients then you should submit an application for vat certification to the hmrc. It is possible to achieve this by making an online application, particularly if you are an individual 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 then you can download the applicable vat application form but will have to print it out at 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 the application then you can certainly 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 so that there’s complete adherence to all or any vat rules. Your vat agent can also guide you during filing of vat returns.
Should you import goods or services from other eu countries that have already charged you vat on the same then you will again need to make a vat refund application to recover that double-taxed amount. Again, your vat agent would be able to make necessary vat applications for vat refunds within the stipulated time. This will help redirect vital funds directly into your enterprise. Since all applications related to vat usually are of time-bound nature, it is crucial you file them within the stipulated time period.
If you would like charge vat to your clients then you’ll have to apply for vat registration to the hmrc as soon as your business becomes eligible for such a move. You should enrol the help of an expert vat agent so that your vat application qualifies instantly plus your vat registration and future vat refunds are awarded without any problems.
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