Value added tax (VAT) is a multi-stage tax that is applied at every stage of production. For completing the process, there is a need to get VAT registration number. The registration must be done with HM Revenue and Customs (HMRC). The business must register for VAT if the total turnover of a company is more than £85,000. After the completion of registration process, you will be provided with a registration certificate. The certificate will contain the following information:
• VAT registration number
• The date at which you have submitted your first VAT return and payment
• The date at which you applied for the registration of VAT
After the completion of registration process, the company should fulfill the following responsibilities:
• Charge the right amount of VAT on the products and services
• Submission of the VAT returns
• Keeping the Vat records and accounts
• Paying all the due VAT to HMRC
VAT can also be reclaimed on certain purchases if the company is already registered for VAT but the process and the responsibilities can be fulfilled only when the company has a specified VAT registration number.
Registration for Vat is a specified process that requires the consideration of several factors. For getting the registration, you need to provide the details about the turnover of your company, bank details, and business activities. The date at which you will get the registration will be known as the effective date of registration. The VAT should be paid with the help of VAT registration number to the HMRC from this date.
Checking the VAT registration number:
For the completion of all this process, you need to have a registration number that will be specified for your company or business. The VAT registration number is not just a random number, it is a number that is generated from a formula. While dealing with a new company, there is a need to check whether their registration number is valid or not. To check the validity of registration number, the following are the things you can do.
1. Calling the helpline of HMRC:
The first option to check the validity of the registration is to call the helpline of HMRC for confirming. Make sure you make a call at the allowed time. However, HMRC will only check the numbers that are UK related.
2. Online VAT information exchange system (VIES):
The second option that can be utilized to check the validity of VAT registration number is to get the help of Vat information exchange system (VIES). The website is operated by the European Commission and it will allow you to check the validity of the number provided.
Apart from the above-mentioned ways, you can calculate the VAT registration number yourself by following the special instructions about the formula.