It is possible to choose flat rate vat if you want to simplify your accounting

In case your company is in a EU country that has adopted vat you’ll be able to opt for flat rate vat if you want to simplify your accounting and also be far from presenting vat figures in full detail Vatcheck-com. This scheme allows you to simply calculate a prescribed amount of your vat inclusive sales as the final vat figure without going into intricate sale or purchase details, as it is normally required when you file vat returns.

If you have a fundamental problem of being aware what is vat and foresee problems in maintaining detailed vat accounts then you can opt for the vat flat rate scheme provided you meetthe factors put in place by the tax authorities in your country. If your business is situated in Great Britain then you can opt for vat flat rate if your estimated sales turnover in the next year excluding vat isn’t over £150,000 or including vat isn’t over £187,500. It is possible to remain under this scheme until your turnover touches £225,000.

Even though you will still have to display the vat amount as part of your vat invoice, you don’t need to keep a detailed account of the vat figures on your sale or purchase when you might need to do under normal vat circumstances. You’ll, however not be able to go in for vat reclaim just in case you opt for the flat rate vat scheme. UK offers a 1% discount scheme for the 1st year for businesses that choose this scheme. In case you deal in services or goods that come under different vat rates then you’ll need to apply the highest vat rate if you do opt for this scheme.

Thus, if you purchase or sell services or goods under reduced vat rates or need to reclaim vat which has recently been paid this scheme would not be ideal for you. However, should you mostly offer services or goods that entail standard vat rates, don’t need to go in for any vat refund, or take part in retail sale then your vat flat rate scheme would be perfect for you and your business. You can get added time to concentrate on growing your organization rather than spending time on vat calculations while filing your returns would also become simpler.

These rules apply to businesses opting for the scheme in the UK. You will have to review eu vat rules if your organization is situated in another eu country. It is possible to join the flat rate vat scheme in your country by studying the rules and completing the necessary vat form. You will probably must find out the classification of your goods and services so that you can use the appropriate flat vat rate while billing your clients. You can also leave the scheme to migrate to a different vat scheme by informing the relevant vat authorities prior to making your move.

Even though the system of vat is rather easy to implement, you will still require services of expert vat agent or consultant to help you with vat calculations, vat returns and vat refunds. However, if your business format is fairly simple and you deal in limited goods or services that come under standard vat rates then you can go for the flat rate vat scheme to simplify your accounting.