Pay uk vat to enjoy all benefits offered by this taxation system

If you’re a trader in the UK with rising taxable sales you will need to pay uk vat to relish all benefits offered by this taxation system. Once your taxable sales touch the vat threshold limit of ?70,000 during the past 12 months then you’ll need to apply for vat registration in order that you too can become part of this tax system that’s in effect in most European countries.

If you’re a very small trader that mostly sells retail goods then you can remain from the purview of vat or value added tax so long as your taxable sales do not touch ?70,000 in 12 months. However, if your sales touch that figure or let’s say you sell goods to vat registered traders then you would be better off as a vat registered trader in the United Kingdom. Vat has been employed as a way of collecting taxes on products or services in most of Europe as well as the UK too follows this system. The vat department in the United Kingdom is headed by HM Revenue and Customs or hmrc department.

After you have crossed over the vat threshold limit for uk www.vatcontrol.com then you’ll have to make an application for vat registration. You can do so even before you reach this limit if you feel that you need to reclaim vat which has previously been paid on goods and services, specifically in a different eu country where this system is followed. You ought to do the hiring of experienced vat agent well conversed in uk and eu vat rules for vat registration purposes as well as for filing of vat refunds to ensure that there are no problems in claiming back vat.

Once you do turn into a vat registered trader in the UK, which may take up to 30 days after you file a web-based vat application then you’ll need to charge vat as per the 14,000 services and goods classifications provided by the hmrc vat department. This will likely have to be done through each vat invoice you will be required to issue during each taxable sale. UK has 3 vat rates beginning with the regular rate of 17.5%, reduced vat rate of 5%, and the zero vat rate. Certain goods and services are totally vat exempt too.

As soon as you turn into a vat registered trader in order to pay and collect uk vat based on vat invoices then you will also have to file your vat returns regularly. Again, your vat agent is going to be required to calculate vat to get paid or refunded depending on your vat purchases and sales. If you have imported goods or services in the United Kingdom after paying vat within a eu country then you can definitely avoid double taxation by filing a vat reclaim form. You’ll be awarded vat refund between four to 8 months after your claim is successfully processed by hmrc and the member country. Overall, vat is an excellent tax system to avoid double taxation as well as plug many loopholes that were present in the conventional sales tax system.

If you are a growing trader in the United Kingdom that sells taxable goods to vat registered traders then you need to keep the cycle of vat alive by turning into a vat registered trader. Now you can collect and pay uk vat whilst claiming any vat previously paid on imported products or services, which in turn will lower tax overheads to some large extent.