Vat Return File It on Time : Financial News Monthly
Vat Return – File It on Time
When the annual sales of a business house reaches up to 64000 pounds annually, the registration for VAT becomes compulsory. VAT is Value Added Tax levied on each stage of value addition. It is a multi stage tax which is levied at each stage of the value added chain of the product but taxpayers will receive credit for tax already paid on procurement stages. A business can register for VAT prior the turnover reaches the doorstep of 64000 pounds.
After the registration for VAT, the business becomes responsible to charge VAT in correct percentage on every sales invoice and transfer of products and services. Companies also need to maintain proper accounts of the VAT charged and also subject to VAT inspection. When it comes to vat, another term that comes in mind is VAT return. Vat returns are required to be filed on quarterly basis. It is submitted to custom and excise before the end of the following month. There are many ways to file the vat return. One can use the online services to file his tax return. In this case, the business house will get the 7 days longer period than the normal to file the vat return.
Many business houses still go for the traditional way to file their vat return as some people do not consider it safe to transfer the amount electronically. Which ever the way you use to file the vat return but the focus should be on filling the vat return on time. Penalty is charged in the case of failing to submit the vat return on time and interest will be charged on the outstanding amount. Another way of penalizing in case of not submitting the vat return is that an assessment may rise which will be paid as a legal debt until the return is submitted and the due amount is corrected.
It is really important to submit the vat return on time, failing to which may catch the attention of tax authorities to your business. It will raise the chances of inspection of your business and investigate the offender. Filing the vat return on time is not the only thing of importance, the maintenance of account books correctly is another major aspect to prevent the business from untimely inspection. The vat registered businesses are usually inspected after every three years but the custom and excise can review the account books even after every quarter.
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Vat Return – File It on Time / Author: Article Manager
