How can a business get UK VAT number?
If you expect to get a UK VAT number, you should possess the following information without fail.
A unique reference to distinguish you from the rest (such as National Insurance number), details of the certificate of incorporation, bank account details of the business etc. are some of the most important information required to obtain a UK VAT number.
As per the current situation, obtaining a UK VAT number can be done via two methods; electronic (online) method or conventional (paper filling) method.
– Online method
Any business can register for VAT online unless there are specific exemptions. Registering online is a faster method than the conventional method. Usually, third party professionals who undertake VAT registration process on behalf of the businesses utilize this online process quite often in order to speed the things up.
– Paper form method
If you still prefer to go with the conventional method of registering for VAT, you can fill out the forms manually and submit them duly filled to the HMRC.
Regardless the method you select to obtain the UK VAT number, it is always important to remember that VAT returns and all the other VAT payments are handled electronically by HMRC because of their ‘paperless’ approach. After receiving the VAT registration number, you can register for all the online services offered by HMRC pertaining to VAT. In order to get registered for VAT, you will require possessing information such as;
– The unique UK VAT number you acquired
– Postal code of the business’s official location
– VAT registered date
– Last VAT return’s finals month etc.
How to reclaim VAT on purchases made prior to VAT registration
After obtaining the VAT number, most of the businesses can reclaim the VAT amounts incurred on past businesses. However, such reclaims are possible under certain restrictions only; it depends on the type of the business you operate.
– Claiming VAT incurred on goods sold in the past
When it comes to goods, you can reclaim the VAT incurred on purchased or imported items during the past four years prior to the VAT registration. However, the goods must fit into the following category.
o They must have been bought by the same entity that you are now registered for VAT
o They must have been bought for taxable business purposes
o The items must be either under your custody or used to manufacture other items that are still under your custody.
– Claiming VAT on past services
You can even reclaim the VAT incurred on services you made use of within six months prior to the registration. However, again, the claiming becomes possible only if;
o The respective services are purchased for the same company that is registered for VAT
o The services are utilized for taxable business purposes only
Once the VAT number is obtained, your business can display the same on all the promotional materials, receipts, websites etc. and maximize the reputation in the business world.
