UK VAT REGISTRATION
Registering for VAT has become a complex matter.
With the increasingly high numbers of applications being refused , referred or delayed. This can have a devastating effect on business. We have successfully registered thousands of businesses for VAT. We make sure that all the information and documents are submitted, allow your application to be processed without being continually referred and delayed.
We also provide Post VAT Registration services to assist you with cash flow, and advise on dealing with HMRC.
We have over 12 years experience and our system has direct interface with HMRC.
Once a company's annual sales revenue
reaches the £77,000 threshold, it is required to register
with HM Revenue and Customs for Value Added Tax (VAT).
The HMRC requirement is for a company to register for
VAT if it expects the total sales revenue for the year
to equal or go beyond the threshold amount.
Vat Centre offers online VAT registration
service for only £50.
What is Value Added Tax (VAT)?
Value Added Tax (VAT) is an indirect
form of tax charged on the sale of goods and services.
This tax is also known as "goods and services tax" or
GST in some countries, including Australia, Canada,
Singapore, New Zealand etc. An indirect tax is, when
tax is collected from someone other than the person
who actually bears the cost of the tax.
VAT was invented back in 1950s by
Maurice Lauré, joint director of the French tax authority,
the Direction générale des impôts, as taxe sur la valeur
ajoutée (TVA in French).
Businesses are entitled to recover
VAT on goods and services that they buy to make further
supplies and services sold to end-users directly or
indirectly, but personal end-consumers of goods and
services cannot claim back VAT on purchases. Thus, the
total tax imposed at each stage in the economic chain
of supply is a constant fraction of the value added
by a business to its goods and businesses has to borne
the cost of collecting the tax rather by the state.
Implementation of VAT has resulted
in discouraging tax fraud and tax evasion.
There are two types of VAT:
OUTPUT VAT is charged by a business
and is paid by its customers. (in this case it is, VAT
on its output supplies).
INPUT VAT is paid by a business to
another businesses on the supplies that it receives
(in this case it is, VAT on its input supplies).
Generally a business is able to recover
its input VAT to the extent that the input VAT is attributable
to its taxable outputs. Input VAT is claimed by setting
it against the output VAT for which the business is
required to account to the government, or, if there
is an excess, by claiming a repayment from the government.
VAT is a tax on the final consumption of certain goods
and services. Our Introduction
to VAT guide provides a summary of the basic
principles of VAT. Business
Briefs , Our Contact Us section includes information
to send your VAT forms or returns' .
Each year the Government
sets a figure - should it be the same as the previous
year or different - which if met by your company, you
need to register for VAT.
If your business satisfies
any of the following statements, you need to register
- If your taxable turnover in the previous year exceeded £77,000
- If your taxable turnover in the next 30 days is expected to exceed £77,000
- The threshold to de-register (E.g.: If your turnover goes below VAT level) is £79,000
Furthermore, if you
are currently trading - or plan to trade - with suppliers
in EU countries, you are also required to register for
VAT within 30 days.
The VAT Flat
Do you have a 'taxable'
turnover of less than £150,000? If so, your business
may benefit from the VAT Flat Rate Scheme.
The following link will direct you
to a document on the HM Customs & Excise web site
(www.hmce.gov.uk) and will give you further detailed
information on registering for VAT.
The complete list of contents within
the document are as follows:
1. VAT registration: basic
1.1 What is this notice about?
1.2 What is VAT?
1.3 Are there different rates of
1.4 What are taxable supplies?
1.5 What are zero-rated supplies?
1.6 What are exempt supplies?
1.7 What if I opt to tax my land
1.8 What if I only supply goods or
1.9 What if I take over a business
from someone else?
1.10 What if I have been registered
for VAT before?
1.11 Do I have to register if I live
or work abroad?
2. Deciding if you need to
2.1 When must I register for VAT?
2.2 Do I have to register if I have
reached the limits but I expect the value of my taxable
supplies to reduce?
2.3 Can I still be registered if
I am not liable to be registered?
2.4 Applying for voluntary registration
if you make taxable supplies.
2.5 Applying for voluntary registration
if you make distance sales
2.6 Applying for voluntary registration
when you make acquisitions
2.7 Exemption from Registration
2.8 How to determine when you become
liable to register
2.9 How to calculate the value of
your taxable supplies.
2.10 How to calculate the value of
your distance sales.
2.11 What can I register as?
3. How and when to notify
3.1 How must I notify you?
3.2 When must I notify you?
3.3 How will my registration date
3.4 Examples of how to work out the
date by which I must notify my liability to be registered
3.5 When will I get my VAT registration
3.6 What if I fail to notify at the
4. Accounting for VAT
4.1 When must I start keeping records
and charging VAT?
4.2 VAT paid before registration.
4.3 What records must I keep?
4.4 Are there different schemes available
to account for VAT?
4.5 What is a VAT return?
4.6 Can I make monthly instead of
three monthly returns?
4.7 What are outputs and inputs?
4.8 Can I have tax periods to match
my financial year?
5. Distance selling
5.1 What is distance selling?
5.2 How does distance selling work?
5.3 How to account for VAT once you
are registered for distance sales in the UK
5.4 What if I am already registered
for VAT because I make taxable supplies and/or acquisitions
in the UK?
5.5 What if I make distance sales
to more than one Member State?
5.6 What if a distance sale involves
5.7 Can I register before I reach
5.8 Can I register before I start
making distance sales?
5.9 What if I do not have a UK business
6.1 What are acquisitions?
6.2 When must I register and account
for VAT on acquisitions?
6.3 Can I register if the level of
my acquisitions is below the limit?
6.4 Can I register before I start
6.5 In what circumstances do I not
need to register due to the level of my acquisitions?
7. Relevant supplies
7.1 What are relevant supplies?
7.2 What is a predecessor?
7.3 Who has to register?
7.4 What if I am already registered
for UK VAT?
8. Non-established taxable
persons (NETPs): basic information
8.1 What is an NETP?
8.2 What is a 'business establishment'?
8.3 When must an NETP register for
VAT in the United Kingdom (UK)?
8.4 How do I decide if I am making
a supply of goods in the UK?
8.5 How do I decide if I am making
a supply of services in the UK?
9. Non-established taxable
persons (NETPs): voluntary registration
9.1 When can I register voluntarily
as an NETP?
9.2 How do I register voluntarily
9.3 What if I have a business establishment
in the UK?
10. Non-established taxable
persons (NETPs): Tax representatives and agents
10.1 Appointment and role of a tax
10.2 What must I do if I appoint
a tax representative?
10.3 Will you make me appoint a tax
10.4 May I appoint an agent instead
of a tax representative?
10.5 Suggested wording for letter
to authorise an agent or employee to act in VAT matters
10.6 What if I do not wish to appoint
a tax representative or an agent?
11. Non-established taxable
persons (NETPs): imports and movement of goods
11.1 Importation of goods from outside
11.2 Examples of how to determine
the place of supply of goods
11.3 Goods acquired from another
EC Member State and supplied in the UK
11.4 Should I be registered if I
am supplying goods to be installed or assembled?
11.5 Simplified procedure for installed
or assembled goods
11.6 Can I reclaim UK VAT if I am
not liable or entitled to be registered?
12. What happens after you
12.1 Help and information for newly
12.2 Visits by our officers
12.3 What should I do if my registration
12.4 What should I do if I change
13. Errors, late notification
13.1 What if I get my registration
13.2 What if I notify you late?
13.3 What if I deliberately avoid
registering for VAT?
14. Statement of Practice:
Artificial separation of business activities
14.2 Why the legislation is required
14.3 The new legislation
14.4 How the new measures will be
14.5 What Customs will consider to
be artificial separation
14.6 The meaning of financial, economic
and organisational links
14.7 How the measure will apply in
14.8 Advice on proposed separations
14.9 Responsibility for issuing directions
15. How to complete application
16. How to complete application
17. How to complete application
18. How to complete application
19. How to complete application
Form VAT1TR to appoint a tax representative in the UK
here to open the HMCE VAT document (will open
in a new window)
INPUT VAT is paid by a business
to another businesses on the supplies that it receives
(in this case it is, VAT on its input supplies).
Generally a business is able to
recover its input VAT to the extent that the input VAT
is attributable to its taxable outputs. Input VAT is
claimed by setting it against the output VAT for which
the business is required to account to the government,
or, if there is an excess, by claiming a repayment from