If you are planning to market goods or services in the UK then you might soon need to turn into a VAT registered trader in order 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, essential that you get the application right the first time around for seamless integration to the vat tax system.
The UK together with most of the eu countries have shifted to vat or value added tax for taxing goods and services 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 then you might not have to sign up for vat since this will allow you to 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 think that this figure could be achieved in the coming 30 days then you’ll have to make an application for vat registration.
In the UK all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. If your sales are near 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 do so by making a web-based application, especially if you are an individual running your own business. You can easily fill up a vat form known as VAT 1 online and submit it online to hmrc vat department. Should your business is a partnership, a firm, a trust, a charity, or 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.
If the hmrc vat department does not have any additional queries upon receiving your 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 who has knowledge of uk vat as well as eu vat systems to ensure that there’s complete adherence to all vat rules. Your vat agent may also direct you during filing of vat returns.
If you import services or goods from other eu countries which have already charged you vat on the same then you will again want to make a vat refund application to recover that double-taxed amount. Again, your vat agent can make the necessary vat applications for vat refunds in the stipulated time. This helps redirect vital funds directly into your enterprise. Since all applications associated with vat tend to be of time-bound nature, it is important that you file them within the stipulated time frame.
If you would like charge vat to the clients then you will need to make an application for vat registration to the hmrc as soon as your business becomes entitled to this kind of move. You must enrol the help of an expert vat agent so your vat application is approved instantly plus your vat registration and future vat refunds are awarded without problems.