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

If you are a trader in the UK with rising taxable sales then you need to pay uk vat to relish all benefits offered by this taxation system Http://vatcheck.com. Once your taxable sales touch the vat threshold limit of ?70,000 in the past 12 months then you’ll need to get vat registration so that you too can become part of this tax system that is in force in the majority of European countries.

If you are a very small trader that mostly sells retail goods you’ll be able to remain from the purview of vat or value added tax so long as your taxable sales don’t touch ?70,000 in 12 months. However, in case your sales touch that figure or let’s say you sell goods to vat registered traders you would be better off as a vat registered trader in the United Kingdom. Vat continues to be employed as a means of collecting taxes on goods and services in the majority of of Europe and the UK too follows this method. 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 VAT then you will have to make an application for vat registration. That can be done before you reach this limit if you feel that you have to reclaim vat which has previously been paid on services and goods, especially in a foreign eu country where this method is followed. You ought to do the hiring of experienced vat agent well conversed in uk and eu vat rules for vat registration purposes and for filing of vat refunds so that there are no problems in claiming back vat.

Once you do turn into a vat registered trader in the UK, which may extend to a month once you file an online vat application then you will have to charge vat according to the 14,000 goods and services classifications given by the hmrc vat department. This will need to be carried out by each vat invoice that you will be needed to issue during each taxable sale. UK has 3 vat rates beginning with the regular rate of 17.5%, reduced vat rate of 5%, as well as the zero vat rate. Certain goods and services are totally vat exempt too.

Once you turn into a vat registered trader in order to pay and collect uk vat based on vat invoices then you will also need to file your vat returns on a regular basis. Again, your vat agent is going to be required to calculate vat to get paid or refunded depending on your vat purchases and sales. In case you have imported goods or services in the United Kingdom after paying vat within a eu country then you can avoid double taxation by filing a vat reclaim form. You will be awarded vat refund between four to 8 months after your claim is successfully processed by hmrc as well as the member country. Overall, vat is a good tax system to prevent double taxation as well as plug many loopholes which were found in the traditional sales tax system.

If you are a growing trader in the UK 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 while also claiming any vat previously paid on imported products or services, which in turn will reduce your tax overheads to some large extent.