If you plan to sell goods or services in Britain then you might soon have to turn into a VAT registered trader in order to achieve it you will need to make 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.
Great Britain together with the majority of the eu countries have shifted 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 in a quite small scale to individual end-users then you may not need to sign up for vat simply because this vat validation will allow you to keep the costs in a lower level. However, once your sales touch the vat threshold limit of 70,000 sterling pounds in the previous Yr or if you feel that this figure could be achieved within the coming 30 days then you’ll need 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 submit an application for vat certification to the hmrc. It is possible to achieve this by looking into making an online application, particularly if you are an individual running your own business. You can simply fill up a vat form referred to 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 type of organization then you can download the applicable vat application form but will need to print it 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 the application then you can expect your vat certificate to arrive within 30 days. Thus, if you wish to receive your vat registration with no hiccups you then should hire a vat agent that has expertise in uk vat and even eu vat systems to ensure that there is complete adherence to all or any vat rules. Your vat agent may also guide 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 need 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 within the stipulated time. This will help redirect vital funds back into your enterprise. Since all applications related to vat tend to be of time-bound nature, it is important you file them within the stipulated time period.
If you would like charge vat to the clients then you will need to apply for vat registration to the hmrc once your business becomes entitled to this kind of move. You should enrol the aid of a professional vat agent so your vat application qualifies instantly and your vat registration and future vat refunds are awarded without problems.