Tax & Accounting News

12 weeks to register for VAT!

13/10/2006

12 WEEKS TO REGISTER FOR VAT!

Genuine businesses are suffering delays of up to 12 weeks in becoming VAT-registered, due to a crackdown on fraudulent VAT registrations.

In an attempt to counter carousel fraud, HM Revenue & Customs are carrying out more checks on businesses applying for VAT registration. Carousel fraud, which involves the import and export of goods such as computer chips and mobile phones without payment of VAT, is responsible for huge amounts of lost VAT in recent years.

HMRC said: ‘We accept that this approach is causing some delays, but we believe they are a necessary part of our fight against fraud. Our intention is to process all applications as quickly as possible, once we are satisfied the registration is genuine.’

A long delay in becoming VAT-registered can cause serious commercial and administrative problems, so anyone setting up a new business should apply for VAT registration well in advance of the intended start date.

 

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