Make an application 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 decrease your costs as well as improve 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. In case you have started a new business in the United Kingdom and also have touched ?70,000 pounds in taxable sales in the past vatregistrationnumber 12 months then you can apply for vat registration with the HM Revenue and Customs or hmrc department. You may also apply before this threshold limit is achieved if you sell your services or goods to mostly vat registered traders. Vat registration can be achieved as being an individual, partnership, company, trust, etc as deemed fit by the hmrc department.

However, once you make an application for vat registration then your costs could increase slightly, and when you sell your goods and services locally in the UK at a retail level then you could choose to remain outside vat should you only sell vat exempt goods. However, if you try to artificially make an effort to separate your enterprise activities only to remain away from system of vat then the 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 permitting you to reclaim vat already paid on goods or services in another country too.

The whole process for registration for vat is quite simple however, if you are not sure about yourself then you definitely 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 can make an application for vat using 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 keep issuing regular invoices to your clients. However, in that period you will have to take into account applicable vat rates and re-issue those invoices issued after the application so your clients can reclaim vat from their end.

As soon as your application is approved then you will receive your unique vat registration number and may need to display it on all vat documents including 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 top. You will have to provide a breakdown of all vat paid and collected within your vat returns which will need to be filed periodically as needed by the hmrc vat department. In case you have already paid vat on products or services in another eu country then you can apply for vat reclaim once you’re a certified vat registered trader.

Vat registration is a straightforward online process that needs to be done first if you want to turn into a vat registered trader in the UK. You can easily fill up the online vat registration form and submit it to the hmrc vat department when you apply for registration for vat.