For those who have started a new business that intends to start trading in goods or services that attract vat or value added tax then you should complete company vat registration process before you start trading. This will likely make sure you get a vat number, issue vat invoices, file your vat returns, and claim vat refunds in order to lower the financial burden on your business due to duplicate taxation.
If you plan to import services or goods from EU countries which have enveloped vat, you’ll certainly require to obtain registered with all the relevant vat authorities throughout your home country. You might use vat online services that will enable you register for a vat refund whenever you import services or goods which have already paid vat in the nation of origin. When you are within the vat threshold limit set by the country to turn into a vat registered dealer, you are able to complete the necessary vat form to get your vat no and begin trading as a registered vat trader.
For example, if you’re already trading in the UK and have crossed over the minimum vat limit in taxable sales in the last Twelve months, then you can make an application for company vat registration. You need to contact your local hmrc vat department or the customs and excise customs vat department to start the procedure for vat registration. You can visit their website and fill in the online form to put the ball rolling for quick registration. You will also need to do a detailed study on the actual vat rates about the products that you propose to trade in, if you are planning to begin a fresh business.
While vat rules are quite simple to comprehend, it will make better sense to appoint a vat agent or vat consultant, especially if you plan to import goods from other EU States where vat would have already been paid before shipping it to the country. This move will help you reclaim vat in those countries so as to get to actual costing figures for your products or services. Additionally, you will have to file regular vat returns stating your purchase, sales, vat collected and vat sum to be paid for that particular period. An efficient vat agent would be in a stronger position to handle all your vat requirements to help you focus on other avenues to increase revenues of your business.
There are different vat rates on different services and goods while certain items and services may also be vat exempt. If you have not registered for vat then you can certainly start trading but will not be allowed to collect vat or claim any vat refunds until your enterprise is vat registered. Anyway, most other businesses that you deal with will require your vat registration before they commence business together with you so that the vat chain is not interrupted.
If you have started an enterprise or are planning to do so in the near future you will need to obtain registered for uk vat as well as eu vat, especially if you plan to contend with other EU countries. This may allow you to claim vat that has previously been paid and also control your product costs by remaining while in the vat cycle. You ought to certainly complete company vat registration process before you start trading on a large scale so as to corner all benefits offered by vat.