VAT

The complete UK VAT Registration Process

uk vat registration

The UK VAT registration, process which was introduced in 1973 is a part of the UK’s admission to the EU.  In the European Union VAT or Value added tax is a type of consumption tax that is assessed on the value added to goods and services. The goods and services that are exported to buyers abroad are not subjected to VAT. It is levied on the sale of all goods and services by businesses in the UK.In the UK, VAT Registration becomes necessary once the sale exceeds 83000 pounds a year. This mightsound like a lot of income right now but the figure refers to taxable turnover. VAT is charged on goods and services on different levels. The current rate is 20 percent on most items.

How does VAT registration work?

Once you know that your company is over the threshold value, your company then needs to be registered for VAT.  In the UK, VAT Registrationthreshold is dependent on your VAT taxable turnover. It doesn’t matter if your business deals in goods and services that are exempt from VAT, you will still need a UK VAT Registrationcertificate. Whether or not you buy goods and services for more than the threshold value, that is 83000 pounds from EU VAT registered suppliers, you are still legible to pay VAT. If you are deciding on taking over an already registered business, you have to register for VAT nonetheless.

How to register for VAT

UK has the highest VAT registration threshold throughout Europe. You can register for VAT online. If your business deals in trading internationally or you are a part of some group, you can register for VAT online at HMRC’s website. Usually, you are required to register for VAT only where you are based. However, if your business is supplying digital services to customers based in other European countries, you are required a UK VAT Registrationcertificatein every country where you are providing your services. You can also use a paper from VAT1 since HMRC does encourage online registrations or you can also sign up for VAT MOSS Service. This needs to be done even if your business’s threshold is lower than the VAT registration threshold. Furthermore, to complete the UK VAT Registrationprocess foreign businesses are subjected to complete form VAT1 that deals with taxable goods and services to the UK.

Where are the UK VAT Registrations submitted?

The VAT Registrationfor foreign businesses must be submitted to the HMRC non-established taxable person unit. A non-established business,using a local agent for attaining the UK VAT Registrationmust register with any local VAT registration unit.

The submission of the VAT Registration form usually takes up to a good four to six weeks. Moreover, once the registration has been granted, a UK VAT number is allocated to the company. Once the business is certified with its VAT registration number, it is free to commence all business operations, like trading that charge the UK VAT.

If you believe that your business is financially feasible, you can hire an accountant who will manage all your VAT returns and tackle all the VAT related affairs on your behalf