You can usually register for business for VAT online. You create an account on the government gateway website. You will then receive a VAT certificate within two to four weeks of completing the registration process. The VAT number for your company will be included on this certificate.
Registering your business for VAT can be a little daunting and at Zoo Accounting, this is an area we can help you with so you don’t have to worry about getting anything wrong.
It’s also worth noting that if you expect your business’s turnover to reach the threshold in the following 30 days or if you’re taking over a VAT-registered going concern, you’ll need to register for VAT.
You account manager at Zoo Accounting will notify you of your VAT number. This is the number that must be included on all invoices. It’s vital to keep in mind that you can’t lawfully charge or show any VAT on your invoices until you get your VAT number.
The applicable VAT rate is determined by the type of the goods being purchased. Some items and services are excluded from VAT entirely. If you speak to your Zoo account manager they will help you determine what can be charged with VAT.
The difference between zero rate VAT and VAT exempt?
Zero-rate VAT goods and services are still theoretically VAT registered, but they are not required to charge VAT on their sales. They can still claim VAT on any of their company’s operating costs and expenses as a result of this. In essence, they continue to ‘charge’ VAT, but at a rate of 0%
A business that only provides goods or services that are VAT-exempt goods on the other hand, is not obliged to register for VAT.
What are your VAT responsibilities?
Once your business is VAT-registered, you must impose VAT on all items and services you provide. Any VAT you have been charged for can then be recovered through business-related charges.
Your business’s VAT must be computed based on the entire sales price of anything you’re selling. It must also be applied to all sales, including exchanges and part-exchanges. When it comes to reporting to HMRC, if you charge a client without including VAT, the entire price will still be regarded inclusive of VAT. Even if you charge a client too much VAT, you are still obliged to pay it to HMRC in full.
At Zoo Accounting we can discuss all your concerns and answer any question surrounding VAT and how it affects your business.
Our article on what VAT is and how it works for business owners will help give you more of an understanding too.
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