VAT Registration Certificate: What is it and why is it important?
VAT registration is a trending topic in the UK these days. This is quite natural because more and more companies and sole traders are wondering whether they should become VAT registered. Of course, when the turnover exceeds 82.000 GBP there is no dilemma – you have to be VAT registered. But, it is possible to become a VAT registered business even if the threshold is lower. In this way, you can become a more reputable business and you can actually save some money. If you want to register for VAT you should know that the VAT registration process ends with a VAT Registration Certificate.
What is a VAT Registration Certificate and why is it important?
There are many ways to describe a certificate, but the simplest definition is that certificates are official documents that are attesting a specific fact. In the case of VAT Registration Certificate, this is a document issued by the HMRC. So, when the Vat registration process is finally finished, you will get a VAT certificate for your company.
We can freely say that the VAT registration certificate serves as an official confirmation that comes from HMRC that your business is registered for Value Added Tax. This certificate includes a few elements that explain a few things about the company.
First of all, it contains a VAT registration number of VRN. As the name suggests, this is a simple identifier that provides information about the company. The next element that is part of the certificate is the date when the company became VAT registered. Many companies are looking at this date in order to determine when the company became a serious player on the market.
The list of elements continues with the issue date. This is just a formal element used for internal purposes. Another important element is the schedule for filing Value Added Tax returns. Some companies are conducting these activities quarterly while others are doing this annually. There are few other options that your company can use.
The certificate also contains the bank details of your company as well as the trade classification (SIC Code). The SIC code is available to the public and describes the business activities, this is a simple way for other businesses and other third parties to find your business.
As you can see, the VAT Registration Certificate is a very important certificate. This is the reason why every company owner should check the certificate once they receive it. If they notice any mistakes, they should contact HMRC right away.
Obtaining a VAT Registration Certificate
Getting a certificate like this is not very difficult, but you have to complete the VAT registration procedure. You can definitely do this on your own, but it will take some time and energy to complete the process. Instead of wasting your time on formalities, you should leave this task to a professional company formation company in the UK. They have the knowledge, experience, and expertise to finish everything in a timely manner and without any hassles. This is the most convenient option for obtaining a VAT Registration Certificate.
