Apply for registration for vat to turn into a vat registered trader

In case you have crossed the threshold limit or want to be a part of the vat or value added tax system then you’ll need to apply for registration for vat to turn into a vat registered trader. When you finally turn into a vat registered trader then you will be empowered to reclaim vat paid in another eu country and thereby lower your costs and also enhance your business earnings.

Several eu countries including the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing goods and services. Vat is thus followed even while trading between member eu countries. If you have started a fresh business in the UK and also have touched ?70,000 pounds in taxable sales during the past 12 months then you can apply for http://vatregistrationnumber.com vat registration with the HM Revenue and Customs or hmrc department. You may also apply before threshold limit is achieved if you sell your goods or services to mostly vat registered traders. Vat registration can be done as an individual, partnership, company, trust, etc as deemed fit by the hmrc department.

However, as soon as you make an application for vat registration then your costs could increase slightly, and if you sell your goods and services locally in the United Kingdom at a retail level then you may choose to remain outside of vat if you only sell vat exempt goods. However, if you try to artificially try to separate your business activities only to remain outside the system of vat then this hmrc vat department may not take your actions lightly in case you are discovered doing the same. There are several benefits of entering the vat system as it will prevents the problem of double taxation by allowing you to definitely reclaim vat already paid on services or goods in another country too.

The whole process for registration for vat is pretty simple but if you are not sure about yourself then you should simply appoint a professional vat agent to deal with all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You are able to make an application for vat through your vat agent too provided you inform the department of your choice. Once you apply for vat registration then the procedure for approving the application usually takes between 10 to 30 days. Until then you can continue issuing regular invoices to your clients. However, during that period you will need to factor in applicable vat rates and re-issue those invoices issued after your application so that your clients can reclaim vat from their end.

Once your application is approved then you will receive your unique vat registration number and will have to display it on all vat documents as well as your vat invoices, vat returns, and vat refunds. You will also need to issue a vat invoice that separately shows all vat rates applied in the invoice along with your vat no at the very top. You will need to give a summary of all vat paid and collected in your vat returns which will need to be filed periodically as needed by the hmrc vat department. If you have already paid vat on goods and services in another eu country then you can apply for vat reclaim once you are a certified vat registered trader.

Vat registration is a straightforward online process that needs to be done first if you wish to turn into a vat registered trader in the UK. You can simply fill the online vat registration form and submit it to the hmrc vat department whenever you make an application for registration for vat.