If you are planning to market services or goods in Britain then you definitely might soon need to turn into a VAT registered trader in order to achieve it you will need to make a vat application for vat registration and vat refunds in the foreseeable future. It is however, essential that you get the application right the first time around for seamless integration to the vat tax system.
Great Britain together with the majority of the eu countries have shifted to vat or value added tax for taxing goods and services available in their respective countries or even re-exported from those countries. In case your trading business deals at a quite small scale to individual end-users you then may not have to sign up for vat simply because this will allow you to keep your costs in a lower level. However, once your sales touch the vat threshold limit of 70,000 sterling pounds within the previous Yr or if you think that this figure could be achieved in the coming 30 days then you'll have to apply for vat registration.
In Britain all vat rules are issued and managed by Her Majesty?s Revenue and Customs department or hmrc. In case your sales are near the vat threshold limit or if you feel that you have to issue vat invoices to any or all your customers then you should make an application for vat certification to the hmrc. You can easily achieve this by making a web-based application, especially if you are a person running your own business. You can easily fill a vat form known as VAT 1 online and submit it online to hmrc vat department. In case your business is a partnership, a company, a trust, a charity, or other kind of organization you may download the applicable vat application but will have to print it at your end, fill it up and dispatch it physically to hmrc.
In the event the hmrc vat department doesn't have any additional queries upon receiving your application then you can certainly expect your vat certificate to reach within 30 days. Thus, if you want to receive your vat registration with no hiccups then you should hire a vat agent who has expertise in uk vat as well as eu vat systems to ensure that there's complete adherence to all or any vat rules. Your vat agent may also guide you during filing of vat returns.
Should you import goods or services from other eu countries that have already charged you vat on the same then you'll again want to make a vat refund application to recover that double-taxed amount. Again, your vat agent would be able to make necessary vat applications for vat refunds within the stipulated time. This helps redirect vital funds directly into your business. Since all applications related to vat tend to be of time-bound nature, it is crucial you file them within the stipulated time period.
If you want to charge vat to the clients then you'll have to apply for vat registration to the hmrc as soon as your business becomes entitled to this kind of move. You must enrol the help of a professional vat agent so that your vat application is approved instantly and your vat registration and future vat refunds are awarded without any problems.