It is possible to opt for flat rate vat in order to simplify your accounting

If your company is in a EU country that has adopted vat then you can choose flat rate vat if you wish to simplify your accounting and stay away from presenting vat figures fully detail Www.vatcheck.com. This scheme allows you to simply calculate a prescribed percentage of your vat inclusive sales as being the final vat figure without going into intricate sale or purchase details, as it is normally required whenever you file vat returns.

If you have a basic problem of being aware what is vat and foresee problems in maintaining detailed vat accounts then you can choose the vat flat rate scheme provided you fulfill the criteria set up by the tax authorities inside your country. If your organization is situated in Great Britain then you can certainly go for vat flat rate if your estimated sales turnover within the next year excluding vat is not over £150,000 or including vat is not over £187,500. It is possible to remain under this scheme until your turnover touches £225,000.

Although you will still have to display the vat amount in your vat invoice, you don’t need to keep a detailed account of your vat figures on the sale or purchase as you might need to do under normal vat circumstances. You will, however not be able to go in for vat reclaim just in case you opt for the flat rate vat scheme. UK also offers a 1% discount scheme for the 1st year for businesses that choose this scheme. In case you deal in services or goods that come under different vat rates then you will need to apply the highest vat rate should you choose opt for this scheme.

Thus, if you purchase or sell goods or services under reduced vat rates or have to reclaim vat that has already been paid this scheme wouldn’t be ideal for you. However, if you mostly deal in services or goods that involve standard vat rates, do not need to have any vat refund, or engage in retail sale then the vat flat rate scheme will be ideal for you and your business. You could find added time to focus on growing your business instead of passing time on vat calculations while filing your returns would also become simpler.

These rules apply to businesses opting for the scheme in the UK. You will have to review eu vat rules in case your business is situated in another eu country. You can join the flat rate vat scheme within your country by studying the rules and filling out the necessary vat form. You will probably need to find the classification of your goods and services so that you can use the appropriate flat vat rate while billing your customers. You may also leave the scheme to migrate to another vat scheme by informing the appropriate vat authorities before making your move.

Although the system of vat is fairly easy to implement, you will still require the services of an expert vat agent or consultant to help you with vat calculations, vat returns and vat refunds. However, if your business format is kind of simple and you offer limited goods or services that fall under standard vat rates then you can go in for the flat rate vat scheme to simplify your accounting.