Confirm all european vat rules before importing goods into an EU State

If you have crossed the threshold limit or want to be a part of the vat or value added tax system then you will need to make an application for registration for vat to turn into a vat registered trader http://vatcheck.com. Once you are a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby decrease your costs and also enhance your business cash flow.

Several eu countries like 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 have touched ?70,000 pounds in taxable sales during the past 12 months then you can definitely make an application for vat registration with the HM Revenue and Customs or hmrc department. You can even apply before this threshold limit is achieved if you sell your goods or services to mostly vat registered traders. Vat registration can be done as being an individual, partnership, company, trust, etc as deemed fit by the hmrc department.

However, once you make an application for vat registration your costs could increase slightly, and when you sell your products or services locally in the UK at a retail level then you may opt to remain outside vat if you only sell vat exempt goods. However, if you try to artificially try to separate your business activities simply to remain outside the system of vat then the hmrc vat department may not take your actions lightly in case you are discovered doing precisely the same. There are many benefits of entering the vat system as it will avoid the problem of double taxation by permitting you to reclaim vat already paid on goods or services overseas too.

The entire process for registration for vat is quite simple but if you are not sure about yourself then you definitely should simply appoint a professional vat agent to handle 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. As soon as you apply for vat registration then the procedure for approving your application usually takes between 10 to 30 days. Until then you can keep issuing regular invoices to your clients. However, during that period you will have to factor in applicable vat rates and re-issue those invoices issued after the application so your clients can reclaim vat from other end.

Once your application is eligible then you will receive your unique vat registration number and will have to display it on all vat documents including your vat invoices, vat returns, and vat refunds. You will probably have to issue a vat invoice that separately shows all vat rates applied in the invoice together with your vat no at the very top. You will need to provide a summary of all vat paid and collected in your vat returns that 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 try for vat reclaim once you are a certified vat registered trader.

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