You’ll need uk vat registration if you want to charge or reclaim vat

If you are a trader in Britain with rising sales or desire to voluntarily enter into the VAT tax system then you need uk vat registration if you wish to charge or reclaim vat. Once you are a uk vat registered trader then you can start charging vat or value added tax to the clients and also reclaim previously paid vat on services and goods, even if paid in another eu country.

Much like most other countries inside the European Union like Greece, Spain, Poland, Sweden, Germany, Italy, etc, Britain too embraced the system of vat as a means of taxing goods and services. If your business is vatregistrationnumber quite small , your end-clients are people who don’t need vat invoices then you would be better off by remaining outside the scope of vat because this will reduce your costs. However, when your taxable sales cross ?70,000 in the earlier 12 months then you’ll have to register for vat unless you deal only in vat exempt goods or services.

On the flip side, if your clients would like you to charge vat to them to enable them to offset it against their sales then you can make an application for vat registration before the vat threshold limit has been achieved. You are able to apply for uk vat registration as an individual, partnership, company, club, association, charity, etc depending on the nature of the business. You will have to apply online for registration to your HM Revenue and Customs department or hmrc department provided you meet all criteria presented by them.

In case you import taxable goods from other eu and non-eu countries to sell them locally, re-export goods or services outside of the UK, as well as buy goods locally to resell them, then you will have to get vat registered in Britain, especially if you have crossed over the vat threshold limit. You are able to make an application for online vat application only if you use VAT 1 form, which is for small businesses run by individuals. Other registration forms can be downloaded but will need to be filled manually before being dispatched to the hmrc vat department for processing. You need to get your vat number within 1 month of applying, provided all your documents are typically in order.

You may be able to issue a vat invoice against each sale and also will need to specify vat rates against each product or service. You will also have to file vat returns as decided by the hmrc department. However, if you have already paid vat on goods and services, even when they were paid in another eu country you will now be able to file for vat refund and receive that amount back to your bank account. This feature will help enhance your business cash-flow whilst reducing your product or services costs. In case you have difficulty in understanding uk vat and eu vat rules then an expert vat agent could help solve all of your problems associated with vat returns and vat refunds so that your business keeps on growing without any taxation hiccups.

If your organization is poised to break above the vat threshold limit of ?70,000 in taxable sales then you’ll have to turn over a vat registered trader. However, it is a move in the correct direction since once you complete your uk vat registration process and turn into a vat registered trader then you will be in a position to claim for vat refunds and infuse those funds into your business.

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