Confirm all european vat rules before importing goods into an EU State
If you have crossed the threshold limit or want to be a part of the vat or value added tax system then you will need to make an application for registration for vat to turn into a vat registered trader Http://vatcheck.com. When you finally turn into a vat registered trader you will then be empowered to reclaim vat paid in another eu country and thereby decrease your costs and also enhance your business earnings.
Several eu countries like the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing products or services. Vat is thus followed whilst trading between member eu countries. In case you have started a new business in the United Kingdom and have touched ?70,000 pounds in taxable sales during the past 12 months then you can apply for vat registration with the HM Revenue and Customs or hmrc department. You may also apply before threshold limit is achieved if you sell your goods or services to mostly vat registered traders. Vat registration can be done as an individual, partnership, company, trust, etc as deemed fit by the hmrc department.
However, once you apply for vat registration your costs could increase slightly, and when you sell your goods and services locally in the United Kingdom at a retail level then you may opt to remain outside of vat should you only sell vat exempt goods. However, if you try to artificially try to separate your enterprise activities simply to remain outside the system of vat then this hmrc vat department might not take your actions lightly if you’re discovered doing the same. There are several advantages of entering the vat system since it will prevents the problem of double taxation by permitting you to reclaim vat already paid on goods or services overseas too.
The entire process for registration for vat is pretty simple however, if you aren’t sure about yourself then you definitely should simply appoint an expert vat agent to deal with all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You can apply for vat using your vat agent too provided you inform the department of your choosing. Once you apply for vat registration then the procedure for approving the application typically takes between 10 to 30 days. Until then you can continue issuing regular invoices to your clients. However, during that period you will have to factor in applicable vat rates and re-issue those invoices issued after your application so that your clients can reclaim vat from their end.
As soon as your application is approved then you will receive your unique vat registration number and will need to display it on all vat documents including your vat invoices, vat returns, and vat refunds. You will probably have to issue a vat invoice that separately shows all vat rates applied in that invoice together with your vat no at the top. You will need to provide a breakdown of all vat paid and collected within your vat returns which will need to be filed periodically as needed by the hmrc vat department. In case you have already paid vat on goods and services in another eu country then you can certainly try for vat reclaim once you’re a certified vat registered trader.
Vat registration is a straightforward online process that has to be done first if you wish to turn into a vat registered trader in the UK. You can simply fill up the web based vat registration form and submit it to your hmrc vat department when you make an application for registration for vat.