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Our Express VAT Registration service is provided by VAT Centre, the leading VAT specialists in the UK. Our VAT service provides you with a step by step, guided online process to register your business for VAT. Complete package includes the following features:
More Information about VAT
Once a company's annual sales revenue
reaches the £64,000 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.
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 on 'Where to send your VAT forms or returns' .
Introduction
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 for VAT:
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If your taxable turnover in the previous year exceeded £60,000*
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If your taxable turnover in the next 30 days is expected to exceed £60,000*
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The threshold to de-register (E.g.: If your turnover goes below VAT level) is £58,000*
* as from 1st April 2005
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 Rate Scheme
Do you have a 'taxable' turnover of less than £150,000? If so, your business may benefit from the VAT Flat Rate Scheme.
More Information
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 information
1.1 What is this notice about?
1.2 What is VAT?
1.3 Are there different rates of VAT?
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 and buildings?
1.8 What if I only supply goods or services abroad?
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 register
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 us
3.1 How must I notify you?
3.2 When must I notify you?
3.3 How will my registration date be decided?
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 number?
3.6 What if I fail to notify at the correct time?
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 excise goods?
5.7 Can I register before I reach the threshold?
5.8 Can I register before I start making distance sales?
5.9 What if I do not have a UK business establishment?
6. Acquisitions
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 making acquisitions?
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 for VAT?
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 representative
10.2 What must I do if I appoint a tax representative?
10.3 Will you make me appoint a tax representative?
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 the EC
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 are registered
12.1 Help and information for newly registered businesses
12.2 Visits by our officers
12.3 What should I do if my registration details change?
12.4 What should I do if I change legal entity?
13. Errors, late notification and fraud
13.1 What if I get my registration date wrong?
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
14.1 Introduction
14.2 Why the legislation is required
14.3 The new legislation
14.4 How the new measures will be applied
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 particular circumstances
14.8 Advice on proposed separations
14.9 Responsibility for issuing directions
15. How to complete application Form VAT1
16. How to complete application Form VAT1A
17. How to complete application Form VAT1B
18. How to complete application Form VAT1C
19. How to complete application Form VAT1TR to appoint a tax representative in the UK
Click 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 the government.
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