If you plan to sell goods or services in the UK then you might soon need to turn into a VAT registered trader and to achieve it you will need to make a vat application for vat registration and vat refunds in the future. It is however, important that you get your application right the first time around for seamless integration into the vat tax system.
The UK along with most of the eu countries have shifted over to vat or value added tax for taxing goods and services sold in their respective countries or even re-exported out of those countries. If your trading business deals at a very small scale to individual end-users then you might not need to register for vat since this will allow you to keep your costs at a lower level. However, once your sales touch the vat threshold limit of 70,000 sterling pounds within the previous 12 months or if you feel that this figure could be achieved in the coming 30 days then you will have to apply for vat registration.
In the UK all vat rules are issued and managed by Her Majesty’s Revenue and Customs department or hmrc. If your sales have reached the vat threshold limit or if you feel that you need to issue vat invoices to all your clients then you should make an application for vat certification to the hmrc. You can easily do so by making an online application, especially if you are an individual running your own business. You can simply fill up 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 any other type of organization then you can download the applicable vat application form but will need to print it out at your end, fill it up and dispatch it physically to hmrc.
If the hmrc vat department does not have any additional queries upon receiving your application then you can expect your vat certificate to arrive within one month. Thus, if you want to receive your vat registration without any hiccups then you should hire a vat agent that has expertise in uk vat and even eu vat systems so that there is complete adherence to all vat rules. Your vat agent can also guide you during filing of vat returns.
If you import goods or services from other eu countries that have already charged you vat on the same then you will again need to make a vat refund application to recover that double-taxed amount. Again, your vat agent would be able to make the necessary vat applications for vat refunds within the stipulated time. This will help redirect vital funds back into your business. Since all applications related to vat usually are of time-bound nature, it is important that you file them well within the stipulated time frame.
If you want to charge vat to your clients then you will need to apply for vat registration to the hmrc as soon as your business becomes eligible for such a move. You should enrol the help of an expert vat agent so that your vat application is approved instantly and your vat registration and future vat refunds are awarded without any problems.