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Although VAT has been embraced by several eu countries including the UK, rates and classifications have not been completely standardized and the European Commission has now embarked on an exercise of bringing eu countries under a common vat umbrella with suitable vat directive. The directive aims to establish a common system of vat across all European Union member vat countries so as to reduce conflicts caused by varying vat rates and difference in policies.
Although vat has been embraced by several eu countries including the UK, rates and classifications have not been completely standardized and the European Commission has now embarked on an exercise of bringing eu countries under a common vat umbrella with suitable vat directive. The directive aims to establish a common system of vat across all European Union member vat countries so as to reduce conflicts caused by varying vat rates and difference in policies.

This directive covers several aspects other than simply establishing common vat rates. The directive has already instructed member states to charge a standard vat rate of not less than 15% on most goods and services. The reduced rates too have been set at not less than 5% on certain goods and services. However, member states can consult the vat committee to apply special reduced vat rates, apply zero vat rate or even exempt certain goods and services from any vat tax at all. These goods and services are usually related to socio-economic sectors such as hospitals, schools, banking, insurance, postage stamps, and even gambling.

The vat directive also seeks to standardize vat refunds for vat amounts already paid in a eu vat country before it is exported to another vat enabled country where vat is charged again. These vat refunds can be applied for and received through a specific electronic procedure. For example, if a vat registered trader in the UK has imported certain goods from Sweden where vat has already been paid then the trader can apply for a vat refund through HM Revenue and Customs department or hmrc vat, which handles collection and monitoring of customs, excise and vat duties in the UK. The application will then be forwarded to Sweden and the trader will then need to submit all relevant documents electronically to the vat department of Sweden before receiving a vat refund in the same manner depending on the specifications filled in the vat reclaim form.

These vat directives also cover goods and services taken from one eu country to another by travelers and other individuals. The directive also tries to plug tax leaks by bringing in specific rules for intra-community transactions for both suppliers and buyers. The latest directive is basically a recast of the original sixth directive that heralded in the common system of vat in eu countries, although it tries to further fine-tune the system of vat. Several eu countries including Greece and the UK have just increased or have planned to increase vat rates in the near future. Other countries too might follow suit in a bid to reduce the disparity between vat rates. There have also been several amendments to these directives as the eu tries to establish a common code of vat between all member eu countries that follow vat.

Vat aims to collect tax only from the final consumer instead of allowing double-taxation to raise prices of goods and services in an unwanted manner. However, since there are several eu countries that have adopted vat it is necessary for the European Commission to issue a common vat directive that seeks to codify all provisions governing vat on all member eu countries that have adopted vat.

If your business is situated in any VAT enabled eu country or in the UK then paying applicable vat customs and excise duties is crucial for a healthy business. If you fail to pay the correct amount of duties then you could either end up inflating your business costs or end up on the wrong side of the law, in which case you could end up being penalized.

If your business involves importing goods or services into the UK then you will need to pay customs duties on the same unless they are classified as exempt from any levies. In case you are a manufacturer in the UK then the goods manufactured by your business will be subject to excise duties. Customs duties are also known as import vat in the UK and most eu countries that follow vat have somewhat similar rules while collecting duties and taxes. If you are a vat registered trader or manufacturer in the UK then you will be subject to rules stemming from the Vat Act of 1994 along with various amendments applicable over the coming years.

The HM Revenue and Customs department or hmrc department has around 14,000 classifications under which all goods and services are classified. These attract a standard vat rate of 17.5% or a reduced vat rate of 5% or attract zero vat rate. Some goods and services such as those related to children or gambling are vat exempt too. You will thus need to first confirm the correct classification of any goods or services being imported and sold in the UK by your business so that you end up paying the right amount of vat customs and excise levies over them. This can be achieved by hiring an efficient vat agent that has complete expertise in uk vat, eu vat, customs and excise rates and rules.

This move will ensure that even if any vat is paid in the country of origin over any goods or services, you can still apply for vat reclaim to recover it back into your bank account. Your vat agent can help file for a vat refund while also filing regular vat returns. This will be possible only if you have vat registration in the UK. However, you can get vat refunds only on any customs, excise or vat levies paid on goods or services that are directly related to your business. Such refunds can take up to 8 months to materialize but can surely help in improving your business cash flow in the long run.

Hmrc vat department will also monitor your vat returns that will need to mention payments and receipts of all vat amounts on a monthly, quarterly or yearly basis depending on the vat scheme chosen by you. In addition you will also need to maintain records of all customs and excise duties paid by you and will need to be produced on demand in case of an audit conducted by hmrc officers. An efficient vat agent can ensure that your business does not get interrupted due to poor maintenance of records connected to customs and excise customs vat.

If you are importing goods or services into the UK or even manufacturing them in the UK then you will surely need to ensure that you end up paying the correct rate of customs duties, excise duties or vat on them. A competent vat agent would be your greatest asset in ensuring that all your vat customs and excise duties are paid dutifully as well as proper records are maintained for the same.

If you are a trader in any EU country including the UK that follows vat then you should apply for a vat certificate as soon as you reach the vat threshold. You will then be allowed to issue vat invoices, file vat returns and most importantly, claim vat refunds for vat tax already paid on goods and services.

If you are a trader in the UK then the HM Revenue and Customs department or hmrc has set a VAT threshold limit of achieving £70,000 of taxable sales within the past 12 months as a criterion for turning into a vat registered trader. You can also apply before you reach this limit in case you feel that you have to issue vat invoices for all your clients. Once you do decide to apply for a certificate that allows you to trade as an official vat trader then you can simply download the require vat registration form from the hmrc website.

If you are an individual trader then you can just fill up the VAT 1 registration form online and submit it immediately. In case your trading business is a partnership firm, group of companies, import firm, or distance-selling firm, then you can download and print the applicable vat form but will need to fill it up and send it back to the hmrc vat department. It will take roughly between 10 to 30 days for you to receive your vat registration and vat certificate provided hmrc does not have any additional queries.

However, once you do apply to turn into a vat registered trader then you will need to include the applicable vat rates in your invoices without showing them separately. Once you receive your vat registration then you will need to re-issue these invoices as vat invoices, show the vat amounts separately, and also pay the vat collected to hmrc in your next vat return. You will need to file your vat returns on a monthly, quarterly or yearly basis based on the vat accounting scheme that you choose. You should anyway hire an efficient vat agent that has complete knowledge of customs and excise customs vat, uk vat and eu vat, especially if you plan to import goods into the UK from neighboring vat friendly eu countries.

If you import goods and services into the UK where vat has already been paid in the original country then your vat agent can help you to file for vat reclaim so that double-taxation is avoided on them. You will need to provide proof in the form of your vat certificate while applying for vat refunds to show that you are indeed a genuine vat registered trader in the UK. It will take between 4 to 8 months for your vat refund to materialize although you should apply for refunds to lower your business costs and inject vital funds back into your business.

If you want to become a vat registered trader in the UK and claim vat back on goods and services then you will need to apply for the official certificate from hmrc vat department. The process is quite simple and you can easily download the applicable vat form from hmrc, fill it up, and send it back to the vat department. If there are no further queries then you can certainly expect your vat certificate within a month.

If you are a VAT registered trader in the UK then in addition to issuing vat invoices and filing regular vat returns you should also remain ready for a vat audit by maintaining proper records. An audit could be initiated by the hmrc vat department if they get suspicious about certain financial activities or could be initiated simply to check if you are adhering to the supplied guidelines.

The United Kingdom has embraced the system of vat or value added tax along with most eu countries including Germany, Spain, Italy, Sweden, Poland, etc. Although the language in each vat invoice might be different along with different vat rates on various goods and services, the basic system of vat is still the same in each country. Once your sales turnover in the UK touches the vat threshold limit of £70,000 then you will have to apply for vat registration.

Upon turning into a vat registered trader, you will be bound by uk vat rules that specify that your vat invoice has to mention your vat number, vat percentage, vat rate and vat amount in a format specified by the hmrc vat department. You will also need to file vat returns based on your goods and service classifications and your sales turnover. You vat returns will need to summarize all vat amounts paid during purchases and collected during sales within the specified period. All excess vat collected will also need to be paid to the hmrc.

However, vat officers at the hmrc might compare your vat returns with earlier periods and in case they do spot any anomalies, or if they feel that they need to get a detailed clarification on certain vat figures then they might initiate a vat audit. They may do so by either visiting your business premises or even clarify a few doubts over the phone. If they do visit your business premises to conduct an audit then there are several financial records that they will surely check to satisfy their doubts.

Vat officers will firstly compare random or each vat invoice with your sales books and vat return to cross-check if you have indeed recorded each sale as required by the vat rules. In addition, officers might also check your cash and bank accounts or books during the same period to verify if your purchase and sales figures correspond to an increase or decrease in balances as they would normally tend to do so. A few purchase or sales invoices might also be cross-checked with the respective parties to verify the genuineness of the same. Thus, maintaining up-to-date accounts at all times will surely help you emerge out of a vat audit without any problems.

On your part, you should appoint a vat agent conversant with uk and eu vat rules, especially if you import goods and services into the UK and also make regular vat refund claims. Your vat agent should also conduct regular internal audits to ensure that any mistakes made are caught quickly and rectified before they reach the table of the hmrc vat department.

Maintaining proper financial records is compulsory if you want your business to run smoothly. If you are a vat registered trader then you should certainly take additional efforts to maintain genuine financial records of all books of accounts including vat purchases and sales so that any sudden vat audit imposed upon you is handled without any penalties or interruptions to your business.

If you are a VAT registered trader in the United Kingdom that imports goods from other eu countries that follow the system of vat or value added tax then for vat already paid you will need to apply for refund vat. If you have paid vat on goods and services in the original country before it was imported into the UK then you can reclaim that amount by following the required vat reclaim rules.

In the UK, managing all vat, customs and excise duties are entrusted to the HM revenue and customs department or the hmrc vat department. If you are a vat registered dealer, have your own vat number, and issue vat invoices to your clients then you can register for the vat uk refund scheme launched by the hmrc department. This is an online process that eliminates dispatching paperwork although you might need to send some papers to the original eu country where the vat amount was first paid.

Once you finish the online registration by submitting the online vat form then you can start claiming vat refunds based on vat already paid in other member eu countries such as Sweden, Italy, France, Germany, Spain, Poland, etc that also follow vat. However, if you are not well-conversant with uk vat and eu vat rules then you should entrust this work to an experienced customs and excise customs vat agent that can take away all your vat worries. You can empower your agent to act on your behalf with the help of a letter of authority or power of attorney.

You will have to file for refund vat not later than nine months for any vat amount paid in the preceding calendar year. Once your refund claim is sent electronically through the hmrc website then it will be forwarded to the original eu country’s vat department where the vat amount was originally paid. You might have to scan the original vat invoice and attach it to your email, although some countries might want to scrutinize the original invoice physically for high-value vat refunds.

Your refund will usually be processed and paid within 4 months if all your documents are approved by the eu country. If, however, there are some clarifications that need to be made then the process might take an additional 4 more months. The money will be transferred into an account specified by you in the member eu country or in the UK itself, although it will be in the currency of that country. The money received will surely help you in these tough competitive times by lowering your product and service costs as well as improving your cash flow at the same time. If you import goods or services from vat-enabled member eu countries and are paying vat in the original country then you need not incur the burden of double taxation in the UK. You should simply file for a vat refund for that amount and wait patiently until your original vat amount is returned back to you within a few months.

An expert vat agent can be of great help in ensuring that your claims are filed well in time while also keeping an eye out for refunds that arrive in your bank account. Your business will certainly benefit with the refund vat uk scheme initiated by the hmrc and you can surely receive your tax money back into your own account.