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

If you're a trader in the UK with rising taxable sales then you need to pay uk vat to enjoy all benefits provided by this taxation system Http://www.vatcheck.com. As soon as your taxable sales touch the vat threshold limit of ?70,000 in the past Twelve months then you need to apply for vat registration in order that you too can end up part of this tax system that is in effect in most European countries.

If you are a very small trader that mostly sells retail goods you'll be able to remain out of the purview of vat or value added tax as 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 then you would be better off being a vat registered trader in the United Kingdom. Vat continues to be employed as a means of collecting taxes on goods and services in most 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.

Once you have crossed over the vat threshold limit for uk VAT then you will have to apply for vat registration. You can do so before you reach this limit if you feel that you need to reclaim vat that has already been paid on services and goods, especially in a foreign eu country where this system is followed. You ought to do the hiring of an 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 could extend to 30 days once you file an online vat application then you'll have to charge vat according to the 14,000 goods and services classifications provided by the hmrc vat department. This will have to be carried out by each vat invoice you will be required to issue during each taxable sale. UK has 3 vat rates starting with the standard rate of 17.5%, reduced vat rate of 5%, as well as the zero vat rate. Certain services and goods 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 need to file your vat returns regularly. Again, your vat agent will be necessary to calculate vat to get paid or refunded based on your vat purchases and sales. In case you have imported services or goods in the UK after paying vat within a eu country then you can definitely avoid double taxation by filing a vat reclaim form. You will be awarded vat refund between four to eight months after your claim is successfully processed by hmrc and the member country. Overall, vat is a good tax system to prevent double taxation and also plug many loopholes that were present in the traditional sales tax system.

If you're a growing trader in the United Kingdom that sells taxable goods to vat registered traders then you will want 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 will will reduce your tax overheads to a large extent.