Pay uk vat to enjoy all benefits offered by this taxation system

If you are a trader in the United Kingdom with rising taxable sales then you need to pay uk vat to enjoy all benefits offered by this taxation system. As soon as your taxable sales touch the vat threshold limit of ?70,000 during the past 12 months then you’ll need to get vat registration so that you too can become part of this tax system that’s in effect in the majority of European countries.

If you’re a very small trader that mostly sells retail goods you’ll be able to remain from the purview of vat or value added tax as long as your taxable sales don’t touch ?70,000 in 12 months. However, in case your sales touch that figure or if you sell goods to vat registered traders then you would be better off as a vat registered trader in the United Kingdom. Vat continues to be employed as a means of collecting taxes on products or services in the majority of of Europe as well as the UK too follows this method. The vat department in the UK is headed by HM Revenue and Customs or hmrc department.

After you have crossed over the vat threshold limit for uk www.vatcontrol.com then you will have to apply for vat registration. That can be done even before you reach this limit if you feel that you need to reclaim vat which has already been paid on goods and services, especially in a different eu country where this system is followed. You should do the hiring of an experienced vat agent well conversed in uk and eu vat rules for vat registration purposes as well as for filing of vat refunds to ensure that there are no problems in claiming back vat.

Once you do turn into a vat registered trader in the UK, which could take up to a month once you file a web-based vat application then you’ll need to charge vat according to the 14,000 goods and services classifications provided by the hmrc vat department. This will have to be carried out by each vat invoice that you will be required to issue during each taxable sale. UK has 3 vat rates beginning with the standard rate of 17.5%, reduced vat rate of 5%, and the zero vat rate. Certain services and goods are totally vat exempt too.

As soon as you turn into a vat registered trader in order to pay and collect uk vat determined by vat invoices then you’ll also have to file your vat returns regularly. Again, your vat agent is going to be necessary to calculate vat to get paid or refunded based on your vat purchases and sales. In case you have imported services or goods in the UK after paying vat within a eu country then you can definitely avoid double taxation by filing a vat reclaim form. You’ll be awarded vat refund between four to 8 months after your claim is successfully processed by hmrc as well as the member country. Overall, vat is a good tax system to prevent double taxation and also plug many loopholes which were present in the conventional sales tax system.

If you are a growing trader in the United Kingdom that sells taxable goods to vat registered traders then you will want to keep the cycle of vat alive by getting to be a vat registered trader. Now you can collect and pay uk vat whilst claiming any vat previously paid on imported goods and services, which in turn will reduce your tax overheads to a large extent.