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


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If you’re a trader in the UK with rising taxable sales then you need to pay uk vat to relish all benefits offered by this taxation system Www.vatcheck.com. As soon as your taxable sales touch the vat threshold limit of ?70,000 in the past 12 months then you need to apply for vat registration in order that you too can end up part of this tax system that’s in force in most European countries.

If you are a very small trader that mostly sells retail goods you’ll be able to remain from the purview of vat or value added tax so long as your taxable sales do not touch ?70,000 in 12 months. However, if your sales touch that figure or if you sell goods to vat registered traders then you would be better off being a vat registered trader in the UK. Vat continues to be employed as a way of collecting taxes on products or services in most of Europe and the UK too follows this system. 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’ll have to apply for vat registration. That can be done before you reach this limit if you think that you have to reclaim vat which has previously been paid on services and goods, specifically in a different eu country where this method is followed. You should hire the services of experienced vat agent well conversed in uk and eu vat rules for vat registration purposes as well as for filing of vat refunds so that there are no problems in claiming back vat.

As soon as you do turn into a vat registered trader in the UK, which may take up to a month once you file an online vat application then you’ll need to charge vat as per the 14,000 services and goods classifications provided by the hmrc vat department. This will likely need to be carried out by each vat invoice you will be required to issue during each taxable sale. UK has 3 vat rates beginning with the standard rate of 17.5%, reduced vat rate of 5%, and the zero vat rate. Certain services and goods are totally vat exempt too.

Once you are a vat registered trader so as to pay and collect uk vat based on vat invoices then you will also need to file your vat returns on a regular basis. Again, your vat agent is going to be required to calculate vat to be paid or refunded based on your vat purchases and sales. In case you have imported goods or services 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 avoid double taxation and also plug many loopholes that were present in the conventional sales tax system.

If you’re a growing trader in the UK 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. You can now collect and pay uk vat whilst claiming any vat previously paid on imported goods and services, which will will reduce your tax overheads to a large extent.