For supplying to vat registered traders it makes sense to sign up for vat

If you are a trader in the UK or any other EU country which has adopted or vat as a method of collecting taxes then for supplying vat registered traders it makes sense to register for vat. It will be possible to give on vat benefits to the customers while also being able to reclaim vat that might already have been paid in a foreign country.

In the UK you are able to register as being a vat registered trader regardless of whether you are an individual operating a business, a partnership, a club, a company, an association, or other vatnumbers type of organisation. Basically, for anyone who is dealing in services or goods that attract vat then you can certainly get registered for vat. In addition, if your main customers are vat registered dealers then it definitely makes sense that you continue the vat tax chain and turn into a vat registered dealer.

In case your taxable sales go over the vat threshold limit of ?70,000 in the previous 12 months then you are qualified to apply for vat registration. However, you can also volunteer to obtain registered for vat before crossing the threshold limit too. Vat is an efficient method of taxing goods and services to be able to avoid the problem of double taxation as well as create transparency within the tax system. If you’re planning to import goods or services to the UK and then sell them locally you’ll be able to also make an application for vat refunds once you turn into the official vat registered trader. You will have to apply to the HM revenue and customs department or the hmrc department, which in turn will forward your refund application to the concerned eu country.

Once you sign up for vat with the hmrc department and turn into an official vat registered dealer then you’ll have to issue a vat invoice that has been specified by hmrc. You will need to mention your vat number, vat rate and vat amount on the invoice. UK has 3 kinds of vat rates with the standard rates at 17.5%, reduced vat rates at 5% and zero vat rates. Some products or services having a social impact are usually vat exempt. You’ll first need to check with regards to which vat rate applies to each product or service before you begin issuing vat invoices and begin charging the applicable rates.

The vat rules in several eu countries which have adopted vat are slightly different and if you intend to import goods from such countries then you will want to know far more than merely what exactly is vat. A professional vat agent with plenty of understanding of customs and excise duties which also knows all about uk vat and eu vat rules ought to be hired for smooth import of goods and services to the UK. As soon as you turn into a vat registered dealer then you’ll definitely also need to file vat returns at the hmrc specified periods. In case you deal in vat exempted goods you will be unable to claim any vat refunds.

The hmrc offers vat registered dealers a chance to file their vat returns online itself. Your agent can also file the return on your behalf. However, before you be a part of the vat cycle you have to first sign up for vat in order that you too can enjoy all tax benefits offered by this tax system.