VAT Registration – Why Businesses Should Register Online

Tax for all Business Owners in UK

A UK business and so it is important for a company to understand that VAT registration UK is an absolute must. Register a UK Business and sign up for VAT business UK, whether they just have purchased goods from overseas or they have acquired goods in UK from another state in the EU, if they haven’t yet registered. VAT is an essential tax for all business owners in UK.

Vat Registration UK 

The United Kingdom is one of the most developed countries in Europe, and therefore businesses from all over the world migrate to the UK to set up new businesses. The UK government has taken a keen interest in promoting businesses and helping them stay within the country. VAT registration UK is required by all businesses, whether big or small, to register annually to receive the appropriate rates. This is an obligation that businesses voluntarily accept without any compulsion. In fact, some businesses are opting out of vat registration UK because they feel it costs too much.

VAT is a Regressive Tax

VAT is a regressive tax; that is, the rate of tax increases every July 1st. It is also considered as a sales tax. To encourage businesses to register for VAT, the UK government has offered certain privileges. One of which is tax rebate; if your business qualifies for this, then you will get a rebate on the full amount of registration.

What Kind of Goods you’re Selling

First, there are several different rates of VAT, depending on what kind of goods you’re selling. Every product has a standard rate and this is the rate that is applied to all goods, regardless of their type. There are also several types of VAT. These are the basic rate, special rate and zero rates.

Basic VAT

Basic VAT is the rate applied to all goods sold in the UK regardless of their type. It is called the basic rate because it is the rate which is most common to all consumers in the UK. On the other hand, many businesses are choosing to have the special rate with the intention of reducing their tax bill. This is possible since some businesses can qualify for the zero rate.

Register Online

A lot of people would like to register online for their UK VAT because of the convenience it provides. Basically, to register online, one must fill out and submit a form that will be submitted to the registration office via the Internet. After submission, the form is then processed and the registration is immediately approved. The whole process may take up to four weeks, but this depends on the office’s pace.

Tax Planning Strategy

Most businesses are wary about paying the hefty amount of taxes due to high consumption or of not having a proper tax planning strategy. Aside from being a burden, VAT can also be an embarrassing issue especially when it is found out during auditing or inspection. Because of this, many businesses decide to register online to speed up the processes of acquiring their UK VAT number. If the online registration for UK VAT is done accurately, it can also lessen the tax burden.

UK Tax Authority 

Some businesses may also prefer to register online because they do not want to deal with salespeople who visit them personally to complete the formalities of the registration. In fact, even tax audit firms can do online submissions because it reduces the workload. A professional firm can simply prepare the forms and submit them to the UK tax authority electronically. A lot of people find online filing of tax charges as one of the easiest ways to ensure that their goods are fully taxed even if they are sold outside the UK.