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 become a part of the vat or value added tax system then you will need to apply for registration for vat to turn into a vat registered trader. Once you are a vat registered trader then you will be empowered to reclaim vat paid in another eu country and thereby lower your costs as well as improve your business cash flow.

Several eu countries including the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing products or services. Vat is thus followed whilst trading between member eu countries. In case you have started a fresh business in the UK and have touched ?70,000 pounds in taxable sales during the past vatregistrationnumber 12 months then you can definitely apply 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 services or goods to mostly vat registered traders. Vat registration can be done as 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 if you sell your goods and services locally in the UK at the retail level then you may choose to remain outside of vat if you only sell vat exempt goods. However, if you try to artificially make an effort to separate your enterprise activities simply to remain outside the system of vat then the hmrc vat department may not take your actions lightly if you’re discovered doing the same. There are several advantages of entering the vat system as it will prevents the problem of double taxation by permitting you to reclaim vat already paid on services or goods overseas too.

The entire process for registration for vat is pretty simple but if you are not 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 choosing. Once you make an application for vat registration then the process of approving your application typically takes between 10 to 30 days. Until then you can continue issuing regular invoices to your clients. However, during that period you will have to take into account applicable vat rates and re-issue those invoices issued after the application so that your clients can reclaim vat from other end.

As soon as your application is eligible then you will receive your distinct vat registration number and may need to display it on all vat documents including your vat invoices, vat returns, and vat refunds. You will probably have to issue a vat invoice that separately shows all vat rates applied in that invoice along with your vat no at the top. You will have to provide a summary of all vat paid and collected in your vat returns which will have to be filed periodically as needed by the hmrc vat department. If you have already paid vat on products or services in another eu country then you can apply for vat reclaim once you are an official vat registered trader.

Vat registration is a simple online procedure that needs to be done first if you wish to turn into a vat registered trader in the UK. You can simply fill the online vat registration form and submit it to the hmrc vat department when you apply for registration for vat.