If you are a trader in Britain with rising sales or wish to voluntarily enter into the VAT tax system then you need uk vat registration if you wish to charge or reclaim vat. Once you are a uk vat registered trader then you can start charging vat or value added tax to the clients and even reclaim previously paid vat on services and goods, even if paid in another eu country.
Just like most other countries inside the European Union such as Greece, Spain, Poland, Sweden, Germany, Italy, etc, Britain too embraced the system of vat as a way of taxing goods and services. If your business is quite www.vatnumbers.com small , your end-clients are individuals that do not need vat invoices you would then be better off by remaining outside the scope of vat as this will lower your costs. However, once your taxable sales cross ?70,000 in the earlier Yr then you will have to register for vat unless you deal only in vat exempt services or goods.
On the other hand, in case your clients want you to charge vat for them to enable them to offset it against their sales then you can apply for vat registration even before the vat threshold limit has been achieved. You are able to make an application for uk vat registration as an individual, partnership, company, club, association, charity, etc dependant upon the nature of the business. You will have to apply online for registration to your HM Revenue and Customs department or hmrc department provided you meet all criteria presented by them.
If you import taxable goods from other eu and non-eu countries to market them locally, re-export goods or services outside the UK, or even buy goods locally to resell them, then you’ll have to get vat registered in the UK, especially if you have crossed over the vat threshold limit. You are able to apply for online vat application only if you utilize VAT 1 form, which is for small enterprises run by individuals. Other registration forms can be downloaded but will need to be filled manually before being dispatched to the hmrc vat department for processing. You should get your vat number within 1 month of applying, provided all of your documents are typically in order.
You will be able to issue a vat invoice against each sale and will also have to specify vat rates against each product or service. You will also need to file vat returns as decided by the hmrc department. However, in case you have already paid vat on services and goods, even when they were paid in another eu country you will now be able to file for vat refund and receive that amount back to your account. This feature will help enhance your business cash-flow whilst reducing your product or services costs. Should you have difficulty in understanding uk vat and eu vat rules then an expert vat agent could help solve all of your problems associated with vat returns and vat refunds so your business keeps on growing without taxation hiccups.
If your business is poised to break over the vat threshold limit of ?70,000 in taxable sales then you’ll have to turn over a vat registered trader. However, this is a relocation in the right direction since once you complete your uk vat registration process and turn a vat registered trader you will then be in a position to claim for vat refunds and infuse those funds in your business.