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 decrease your costs as well as improve 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 whilst trading between member eu vatvalidation.com countries. If you have started a fresh business in the United Kingdom and have touched ?70,000 pounds in taxable sales during the past 12 months then you can make an application for vat registration with the HM Revenue and Customs or hmrc department. You may also apply before threshold limit is achieved if you sell your goods or services to mostly vat registered traders. Vat registration can be done as being 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 United Kingdom 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 business 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 many benefits of entering the vat system since it will avoid the problem of double taxation by allowing you to reclaim vat already paid on goods or services in another country too.

The entire process for registration for vat is quite simple but if you are not sure about yourself then you definitely 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 can make an application for vat through your vat agent too provided you inform the department of your choosing. Once you apply for vat registration then the procedure for approving the application typically takes between 10 to 30 days. Until then you can keep issuing regular invoices to your clients. However, in 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 other end.

Once your application is approved then you will receive your distinct vat registration number and will have to display it on all vat documents including 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 need to provide a breakdown of all vat paid and collected in your vat returns which will need to be filed periodically as required 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’re a certified 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 United Kingdom. You can easily fill the online vat registration form and submit it to the hmrc vat department whenever you apply for registration for vat.