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 be a part of the vat or value added tax system then you’ll need to make an application for registration for vat to turn into a vat registered trader. When you finally are a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby decrease your costs and also enhance your business earnings.

Several eu countries like the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing goods and services. Vat is thus followed even while trading between member eu countries. In case you have started a new business in the United Kingdom and also have touched ?70,000 pounds in taxable sales in the past 1 year then you can definitely apply for vatregistrationnumber vat registration with the HM Revenue and Customs or hmrc department. You may also apply before 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 apply for vat registration your costs could increase slightly, and if you sell your goods and services locally in the UK at a retail level then you could choose to remain outside of vat if you only sell vat exempt goods. However, if you try to artificially try to separate your enterprise activities simply to remain away from system of vat then this hmrc vat department may not take your actions lightly if you’re discovered doing precisely the same. There are several benefits of entering the vat system as it will prevents the problem of double taxation by permitting you to reclaim vat already paid on goods or services overseas too.

The entire process for registration for vat is quite simple but if you aren’t sure about yourself then you definitely should simply appoint an expert vat agent to handle all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You can 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 procedure for approving your application usually takes between 10 to 30 days. Fo the time being you can continue 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 that your clients can reclaim vat from other end.

As soon as your application is approved then 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 probably have to issue a vat invoice that separately shows all vat rates applied in the invoice along with your vat no at the top. You will have to give a summary of all vat paid and collected in your vat returns that will need to be filed periodically as needed by the hmrc vat department. In case you have already paid vat on goods and services in another eu country then you can certainly try for vat reclaim once you’re an official vat registered trader.

Vat registration is a straightforward online process that has to be done first if you want to turn into a vat registered trader in the UK. You can easily fill up the online vat registration form and submit it to your hmrc vat department when you make an application for registration for vat.