Study vat on services in your country and other eu countries

If you are a vat registered trade in any eu country including the UK then you certainly need to study VAT on services in your country and other eu countries so that you can charge the applicable vat rate as well as make proper vat reclaims for vat paid. The eu vat and uk vat rules are quite complex, and you need to fully understand them if you do not want to end up paying vat on services without charging your clients or forget to reclaim vat already paid on certain services.

EU vat rules issued as directives by the European Commission usually differentiate between vat applicable on services provided to taxable persons engaged in businesses and non-taxable persons such as individuals that utilize such services for personal use only. In such cases where the customer is a business then vat must be charged at the customer’s place of address or in the customer’s country. On the other hand wherever services are supplied to private individuals then vat will have to be charged in the supplier’s country. However, there are also several exemptions to these rules and if you are in any doubt then you should get them cleared through your vat agent or consultant since your business can certainly benefit if you can reclaim vat already paid on services in another eu country where vat is followed.

If your vat registered business is located in the UK then you will need to adhere to uk vat rules issued by hmrc to ensure that vat on services are paid, collected and reclaimed safely. Hmrc lays a lot of emphasis on place of supply to establish the correct rate of vat on such services. For example, if your business is located in the UK but the services are supplied to another eu country that follows vat then that supply falls outside the purview of vat in the UK, i.e. no vat needs to be charged in the UK. You will still need to inquire with the country where those services have been supplied to find out if you need to pay vat in that eu country. However, if that service is provided to a customer in any other country that is not in the European Union then you will not have to charge any eu vat nor will you need to include that particular sale in your vat return.

However, for services supplied within the UK itself, there are several vat classifications issued by hmrc vat that specifies on whether you need to charge the standard rate of vat at 17.5%, reduced vat rate of 5%, or zero vat rate, depending on the services offered by your business. There are also certain services that are vat exempt or fall outside the purview of vat, where usually you cannot claim any vat back. You can visit the website of hmrc.gov.uk to find out about these classifications and exemptions so that you do not end up over-charging or under-charging your customers or run afoul of prescribed vat rules.

If your business is located in the UK and you need to provide or utilize services outside the UK or even within the UK then there are several vat rules applicable on such services. You will need to study vat on services in your country and other eu countries in great detail, and also enlist the help of an expert vat agent so that you pay and collect vat without violating any uk or eu vat rules.

Performing vat online registration is simple and convenient

If you want to or need to turn into a VAT registered trader in the UK or even in most other vat-enabled eu countries then performing vat online registration is simple and convenient. You can also remain free from worrying about whether your documents have reached safely by post and can submit your application on a 24/7 basis.

Most eu countries that follow the system of value added tax or vat follow rules established by the European Commission. These eu vat rules are interpreted by each eu country and even converted into their own local language before being implemented. In the UK it is hmrc or HM Revenue and Customs that have interpreted these vat rules so as to help traders to register for vat and also guide them ahead once they turn into vat registered traders.

If you are one such trader that wants to get registered immediately since your clients demand vat certification to apply for vat reclaim then you will need to do so once your new business starts trading. Anyway, once your taxable sales reach the vat threshold limit of £70,000 in taxable sales in the past 12 months as imposed by hmrc vat department then you will have to apply for vat registration and get your own vat number that will need to be displayed on all vat documents including your vat invoice, vat return and vat refund application.

Hmrc has made it very convenient for you to apply for vat registration online and you simply need to visit their website hmrc.co.uk to kick-start your process into the world of vat. You should, however, first employ an efficient vat consultant or agent that can take care of all aspects related to vat since you will not find it easy to rectify any mistakes and might even get penalized. If you run a small business all by yourself then you can easily fill up the applicable vat online registration form over the internet and submit it to hmrc instantly thus avoiding any postal delays or incurring postal costs.

However, if your business is a partnership or part of a group, or a charitable organization, among other forms of businesses then you will need to download the applicable vat form for registration. You can then print the form and then fill it up before sending it back to hmrc vat by post. Once you apply for vat registration then hmrc will send you a questionnaire within 15 days that will ask for other details such as your address, bank account numbers, telephone and fax numbers, etc. If hmrc is satisfied with all details provided by you then you will normally receive your vat registration number and certificate within a month.

In addition to online registration, hmrc also offers several other vat online services to save your precious time and money. All your vat returns will have to be filed online and you can also apply for vat refunds online for vat already paid on certain goods and services, even if they have been paid in another vat enabled eu country. You should make sure that you get acquainted with your computer and the internet since you can easily find out more about all aspects of vat by visiting the hmrc website.

Getting registered for vat is your first step into the world of vat and once you do turn into a vat registered trader in the UK then you will need to follow all uk vat rules to ensure that your business prospers without a tax hitch. Performing vat online registration is simple and convenient, and a little computer knowledge along with a capable vat agent will ensure that you take a safe first step into the world of vat.

For matters related to vat all roads lead to the nearest vat office

If you need to apply for vat registration or if you are a vat registered trader, or need any information on vat in any eu country including the UK where vat is applied, then for matters related to vat all roads lead to the nearest vat office. In the UK it is Her Majesty’s Revenue and Customs department or hmrc that can guide you on all matters related to vat.

Similar to the UK, other eu countries such as Sweden, Portugal, Spain, Germany, Italy, etc too have various local and central vat offices that implement vat rules in their respective countries. These offices also track taxable sales of each trader in their country so that they can be monitored even more closely once they turn into vat registered traders. In the UK, the vat threshold limit to turn into a vat registered trader is achieving taxable sales of £70,000 in the past 12 months. Once you touch these figures then you will surely need to locate the nearest vat office to start your vat registration process.

In the UK, the hmrc vat department even offers a virtual office over the internet so that you do not need to travel each time you need to ask a query or file future vat returns. The hmrc website hmrc.gov.uk offers several vat online facilities that is sure to save your time, effort and money. If you run a small business single-handedly then you can easily fill up the applicable vat form online for registration and submit it to the vat department. In case your business is a partnership concern, part of a larger group, or even a charitable organization, among others then you can download the applicable application form but will need to send it by post to the corresponding vat office as mentioned in their website.

Hmrc has several offices spread out throughout the UK and notably amongst them are the ones located in Grimsby, Wolverhampton, and even in Aberdeen, Scotland where uk VAT rules are applicable. You should ensure that you hire an expert vat agent or consultant so that your transformation from a regular trader to a vat registered one, and filing of all your vat returns and vat refunds are done as per the required procedure and that too within the stipulated time frame. Other countries in the European Union too follow their version of eu vat rules and also have various offices to cater to their vat registered traders.

You can also visit the virtual office of hmrc to find out more about vat accounting schemes that might best suit your business model. For instance, if you are a small trader that does not want to be burdened by excessive documentation, then you can easily opt for the flat vat rate scheme. You should also follow proper vat accounting procedures based on the scheme that you have chosen since any genuine or willful mistake would be rewarded with a vat audit by vat officers or a call to visit the concerned hmrc office.

For all your vat related needs in the UK you can depend on the nearest hmrc office that can help you solve queries while also accepting all related forms and applications. The hmrc vat website also offers a virtual office that can accept vat returns and applications for vat refunds, thus saving valuable time in the process. For matters related to vat all roads lead to the nearest vat office and you should ensure that all your queries are solved at the physical or virtual office without any delay.

All eu countries have vat exemption rules for specific goods and services

Most eu countries have shifted over to VAT or value added tax as a means of collecting taxes on goods and services, and all these eu countries have vat exemption rules for specific goods and services. This means that certain goods and services, especially those related to charities, health and education usually are totally exempt from payment or collection of any vat.

The European Commission that overseas all vat issues in eu countries such as Poland, Greece, Spain, Sweden, Portugal, the UK, Germany, Italy, Ireland, etc has issued several directives on the common path that needs to be followed to successfully implement and monitor the system of vat tax in each country. Such rules also help in easing imports and exports since vat rules between member eu countries are quite clear. However, most eu countries have set their own standard vat rates that range between 15 and 25% as per EC recommendations. On the other hand, each vat enabled eu country also has certain goods and services that are totally exempt from vat.

For example, in the UK there are several vat exemption goods and services specified by hmrc or HM Revenue and Customs department that handles all aspects of customs, excise and vat duties in that country. According to hmrc vat exempt services and goods include charitable activities, betting activities including lotteries and online betting, physical education and sports activities, sale of works or art and antiques, insurance services, loans and credit services, postal services and postage stamps, houseboat moorings and parking services including parking garages, education services, health services, and a few other specific services and goods. However, there are certain exceptions in vat exempt goods and services that vat registered traders and organizations should study since several related activities do fall under zero vat or reduced vat categories.

Each business or organization should certainly employ a capable vat agent to decipher all vat exemptions clearly so as to avoid confusion and ending up on the wrong side of vat laws in that particular country or even in another eu country in case of a vat reclaim on previously paid vat. Most vat exempt goods and services do not allow for any vat reclaim that otherwise is normally possible in reduced vat or standard vat classifications. This is especially important if a trader is trying for a vat refund for vat already paid on import of goods or services from another country. In such cases, an expert vat agent with thorough knowledge of eu vat and even uk vat rules could prove to be very useful if that trader or organization was located in the UK.

Although the European Commission lays down general guidelines to all eu countries that follow vat, each country exempts certain goods and services from the purview of vat based on their own discretions. Thus, traders and organizations that import or export goods or travel to various eu countries should know all about vat exempt rules and classifications since any error could be looked upon with a high level of contempt and suspicion by vat authorities. All eu countries have vat exemption rules for specific goods and services, and traders or organizations can surely reduce their costs or expenses by studying vat rates and exemptions in great detail before taking any action.

All eu countries that follow vat have to follow vat eu directives

Most European Union countries have slowly switched over to VAT or value added tax on goods and services, and in order to comply with a common code all eu countries that follow vat have to follow vat eu directives. These directives are amended regularly in a bid to further fine tune the system so as to avoid tax leaks and ensure better co-operation among member countries in collecting and refunding vat.

The European Union through its website ec.europa.eu tries to educate member countries and vat registered traders in various countries on some of the rules and regulations that apply on current and future vat rates and refunds. Several countries in Europe including the UK, Sweden, Poland, Greece, Germany, Italy, etc have slowly shifted to the system of vat tax in a bid to raise tax revenues and also to plug tax holes that were previously draining precious resources. Each vat enabled country has its own interpretation of european vat or europa vat rules that might vary slightly but are almost similar in principle.

For example, in the UK a trader that has crossed over the vat threshold limit will need to turn into a vat registered trader before issuing any vat invoice. The subsequent vat collected by the trader is then adjusted against any vat paid and the difference is paid to HM Revenue and Customs or hmrc vat department that looks after all issues connected to customs duties, excise and vat in the UK. Similarly, a trader in Poland would need to issue a faktura invoice, which essence is a vat invoice but in Polish language, and pay vat to the relevant vat department in that country.

Since each country has adopted vat in a slightly different manner by applying varying vat rates to similar products, traders all across Europe usually need to hire a vat agent or vat consultant to help file vat returns regularly. These agents need to be experts in interpreting vat eu rules and vat rules applicable in their own country. For example, a UK trader with vat registration needs to appoint a vat agent that is conversant with uk vat rules. If that trader imports goods from other vat european countries that have already charged vat on the same then the vat agent of that trader should be able to file for vat refund so as to reclaim vat back. This process is quite lengthy but can help European traders recover vat amounts previously paid, which in turn can lower their costs and improve their cash flow.

The europa website tries to educate all vat enabled eu countries to follow a common system of vat so as to decrease friction among member countries due to varying vat rates on similar goods or services. Several European countries too have come up with their own amendments as they try to adapt completely to eu vat directives for better vat compliance in their own country and across borders too.

The move of shifting over to vat has benefited various European countries as they have witnessed higher revenue collections over the years. However, in a bid to ensure better co-operation between member countries, vat eu directives and amendments issued by the European Commission have made constant efforts to improve the system of collecting and refunding vat.

Know all about the vat deregistration process to cancel your vat number

If you are a vat registered trader in the UK that wants to surrender your vat certificate for a number of reasons then you need to know all about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you will still need to account for vat and file a final vat return.

There are several reasons that could compel you to come out of the vat system. You can apply for deregistration of vat if your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of £70,000 in the next 12 months, you sell your business, there is a change in the legal status of your business, you either join another vat group or disband your present vat group, or you intend to join the agricultural flat rate vat scheme. There are several other reasons that are specified by HM Revenue and Customs or hmrc vat department that can make you a valid candidate for vat deregistration.

You can also voluntarily step out of the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can even do so if your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof as well as convince hmrc vat as to the genuineness of the reason as to why you want to cancel your vat registration. Once you are deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from VAT you will need to contact your vat agent that will guide you on the exact process to be followed so that you do not end up making errors. You will need to fill up the VAT 7 vat form after you have read and understood vat notice 700/11 on “Canceling your registration” along with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and will require you to tick the appropriate reason as to why you have applied for deregistration along with providing the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify if you follow the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In case you do not receive a reply then you should remind them. If hmrc is satisfied with your application then you will receive a formal notice of vat cancellation on VAT35 form and also receive a formal notice of exemption from registration on VAT8 form. Your vat agent will now be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain circumstances compel you to apply for cancellation of your vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If all your papers are in order and if there are no mistakes in your deregistration form then you should be out of the vat system within a month of filing for vat deregistration.

You need uk vat registration if you want to charge or reclaim vat

If you are a trader in the UK with rising sales or wish to voluntarily enter into the VAT tax system then you need uk vat registration if you want to charge or reclaim vat. Once you turn into a uk vat registered trader then you can start charging vat or value added tax to your clients and even reclaim previously paid vat on goods and services, even when paid in another eu country.

Just like most other countries in the European Union such as Greece, Spain, Poland, Sweden, Germany, Italy, etc, the UK too embraced the system of vat as a means of taxing goods and services. If your business is quite small and your end-clients are individuals that do not need vat invoices then you would be better off by remaining outside the scope of vat as this will lower your costs. However, once your taxable sales cross £70,000 in the previous 12 months then you will have to register for vat unless you deal only in vat exempt goods or services.

On the other hand, if your clients want you to charge vat to them so that they can offset it against their sales then you can apply for vat registration even before the vat threshold limit has been achieved. You can apply for uk vat registration as an individual, partnership, company, club, association, charity, etc depending on the nature of your business. You will need to apply online for registration to the HM Revenue and Customs department or hmrc department provided you meet all criteria posed by them.

If you import taxable goods from other eu and non-eu countries to sell them locally, re-export goods or services outside of the UK, or even buy goods locally to resell them, then you will have to get vat registered in the UK, especially if you have crossed over the vat threshold limit. You can apply for online vat application only when you use VAT 1 form, which is for small businesses run by individuals. All other registration forms can be downloaded but will need to be filled manually before being dispatched to the hmrc vat department for processing. You should get your vat number within 30 days of applying, provided all your documents are in order.

You will now be able to issue a vat invoice against each sale and will also need to specify vat rates against each product or service. You will also need to file vat returns as decided by the hmrc department. However, if you have already paid vat on goods and services, even if they were paid in another eu country then you will now be able to file for vat refund and receive that amount back into your bank account. This feature will help improve your business cash-flow while also lowering your product or services costs. In case you have difficulty in understanding uk vat and eu vat rules then an expert vat agent could help solve all your problems related to vat returns and vat refunds so that your business keeps on growing without any taxation hiccups.

If your business is poised to break over the vat threshold limit of £70,000 in taxable sales then you will need to turn over a vat registered trader. However, this is a move in the right direction since once you complete your uk vat registration process and turn into a vat registered trader then you will be able to claim for vat refunds and infuse that money into your business.

Apply for registration for vat to turn into a vat registered trader

If you have crossed the VAT threshold limit or want to become a part of the vat or value added tax system then you will need to apply for registration for vat to turn into a vat registered trader. Once you turn into a vat registered trader then you will be empowered to reclaim vat paid in another eu country and thereby lower your costs as well as improve your business cash flow.

Several eu countries including the UK, Spain, Poland, Sweden, Italy, Germany, etc have moved over to vat for taxing goods and services. Vat is thus followed even while trading between member eu countries. If you have started a new business in the UK and have touched £70,000 pounds in taxable sales in the past 12 months then you can apply for vat registration with the HM Revenue and Customs or hmrc department. You can even apply before this threshold limit is achieved if you sell your goods or services to mostly vat registered traders. Vat registration can be done as an individual, partnership, company, trust, etc as deemed fit by the hmrc department.

However, once you apply for vat registration then your costs could increase slightly, and if you sell your goods and services locally in the UK at a retail level then you could opt to remain outside of vat if you only sell vat exempt goods. However, if you try to artificially try to separate your business activities simply to remain outside the system of vat then the hmrc vat department might not take your actions lightly in case you are discovered doing the same. There are several advantages of entering the vat system since it will avoid the problem of double taxation by allowing you to reclaim vat already paid on goods or services in another country too.

The entire process for registration for vat is quite simple but if you are not sure about yourself then you should simply appoint an expert vat agent to handle all vat matters. The hmrc vat department offers several vat online services including applications for registration for vat. You can apply for vat through your vat agent too provided you inform the department of your choice. Once you apply for vat registration then the process of approving your application usually takes between 10 to 30 days. Until then you can continue issuing regular invoices to your clients. However, during that period you will need to factor in applicable vat rates and re-issue those invoices issued after your application so that your clients can reclaim vat from their end.

Once your application is approved then you will receive your unique vat registration number and will need to display it on all vat documents including your vat invoices, vat returns, and vat refunds. You will also need to issue a vat invoice that separately shows all vat rates applied in that invoice along with your vat no at the top. You will need to provide a summary of all vat paid and collected in your vat returns that will need to be filed periodically as required by the hmrc vat department. If you have already paid vat on goods and services in another eu country then you can try for vat reclaim once you are an official vat registered trader.

Vat registration is a simple online process that needs to be done first if you want to turn into a vat registered trader in the UK. You can simply fill up the online vat registration form and submit it to the hmrc vat department when you apply for registration for vat.

For selling to vat registered traders it makes sense to register for vat

If you are a trader in the UK or any other EU country that has adopted VAT or value added tax as a method of collecting taxes then for selling to vat registered traders it makes sense to register for vat. You will be able to pass on vat benefits to your customers while also being able to reclaim vat that might have previously been paid in another country.

In the UK you can register as a vat registered trader irrespective of whether you are an individual running a business, a partnership, a club, a company, an association, or any other type of organisation. Basically, if you are dealing in goods or services that attract vat then you can get registered for vat. In addition, if most of your customers are vat registered dealers then it definitely makes sense for you to continue the vat tax chain and turn into a vat registered dealer.

If your taxable sales cross over the vat threshold limit of £70,000 in the previous 12 months then you are eligible for vat registration. However, you can also volunteer to get registered for vat before crossing the threshold limit too. Vat is an efficient method of taxing goods and services so as to avoid the problem of double taxation as well as bring about transparency in the tax system. If you are planning to import goods or services into the UK and then sell them locally then you can also apply for vat refunds once you turn into an official vat registered trader. You will need to apply to the HM revenue and customs department or the hmrc department, which in turn will forward your refund application to the concerned eu country.

Once you register for vat with the hmrc department and turn into an official vat registered dealer then you will need to issue a vat invoice that has been specified by hmrc. You will need to mention your vat number, vat rate and vat amount on the invoice. UK has 3 types of vat rates with the standard rates at 17.5%, reduced vat rates at 5% and zero vat rates. Some goods and services with a social impact are also vat exempt. You will first need to check as to which vat rate applies to each product or service before you start issuing vat invoices and start charging the applicable rates.

The vat rules in different eu countries that have adopted vat are slightly different and if you plan to import goods from such countries then you need to know much more than simply what is vat. An expert vat agent with sufficient knowledge of customs and excise duties that also knows all about uk vat and eu vat rules should be hired for smooth import of goods and services into the UK. Once you turn into a vat registered dealer then you will also have to file vat returns at the hmrc specified periods. If you deal in vat exempted goods then you will not be able to claim any vat refunds.

The hmrc offers vat registered dealers a chance to file their vat returns online itself. Your agent can also file the return on your behalf. However, before you become a part of the vat cycle you need to first register for vat so that you too can enjoy all tax benefits offered by this tax system.

Use online vat registration for faster and secure vat registering

If you are a trader based in the UK or any other EU country that has adopted vat as a medium of taxation then you should use online VAT registration for faster and secure vat registering. Most countries have computerised their vat operations and you too should save on time and effort by using all online vat services provided by your own vat department.

In the UK vat rules specify that you can apply for vat registration if your taxable sales rise over the vat threshold limit of £70,000 in the past 12 months or if you feel that they will do so within the next 30 days, although you can still register even before your sales touch this figure. However, you can at present only complete basic vat online registration by filling up and submitting vat form 1 online. This form is normally used by small businesses. If your business is a partnership firm, a group of companies, or plans to do business internationally then you can download and print all vat registration forms but will be required to fill up the form manually before sending it back to the HM Revenue and Customs or hmrc vat department.

If you plan to go in for online vat registration in another eu country that has adopted vat then you will need to first study all applicable vat rules before you register your business online. In case you have trouble in deciphering uk vat or eu vat rules then it is better if you appoint a vat agent or even a customs and excise customs vat agent in case you plan to conduct your business on an international level. This will allow you to remain safe while following all vat rules in different countries with falling foul of any department.

Once you send your vat online registration form to the hmrc department then you will receive a vat questionnaire within 15 days that will require additional details to be submitted such as your business address, telephone and fax numbers, bank account numbers, and several other details connected to your business including a few purchase and sales invoices.

Once your application is approved then you will receive your vat number and you will now need to change your invoicing method to issue vat invoices for all your sales. This vat invoice will have to display your vat no, vat rate, vat amount and the same will also need to be displayed on your vat returns that will need to be submitted to the hmrc vat department at regular intervals.

Currently, in the UK there are 3 types of vat rates applicable to all goods and services. The standard vat rate is 17.5% that is set to increase to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% and a zero vat rate on specific goods and services that will remain the same. There are also certain goods and services that are vat exempt. However, the vat rates are different in each eu country although the basic concept of charging vat tax remains the same in all vat enabled countries.

If you want to register your business for vat then going online will help save time and also allow you to securely complete the required process required for vat registration. You should simply log on to the hmrc vat department if your business is located in the UK or ask your vat agent to do so on your behalf before using online vat registration to get registered as a vat dealer without any problem.