Make an application for registration for vat to turn into a vat registered trader

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. Once you turn into a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby decrease your costs as well as enhance your business cash flow.

Several eu countries like the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing products or services. Vat is thus followed even while trading between member eu http://vatvalidation.com countries. If you have started a new business in the UK and also have touched ?70,000 pounds in taxable sales in the past 1 year then you can 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 achieved as an individual, partnership, company, trust, etc as deemed fit by the hmrc department.

However, once you apply for vat registration your costs could increase slightly, and when you sell your goods and services locally in the UK at a retail level then you may opt to remain outside of 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 might not take your actions lightly in case you are discovered doing the same. There are many advantages of entering the vat system since it will prevents the problem of double taxation by allowing you to reclaim vat already paid on services or goods overseas too.

The whole process for registration for vat is quite simple however, if you aren’t sure about yourself then you should simply appoint an expert 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 apply 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 your application usually takes between 10 to 30 days. Fo the time being 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 their end.

Once your application is eligible you will receive your distinct vat registration number and can 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 have to give a breakdown of all vat paid and collected in your vat returns that will have 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 certainly apply for vat reclaim once you are an official vat registered trader.

Vat registration is a straightforward online procedure that needs to be done first if you wish to turn into a vat registered trader in the United Kingdom. You can easily fill the web based vat registration form and submit it to your hmrc vat department when you make an application for registration for vat.