If you have started a fresh business that intends to start trading in goods or services that attract vat or value added tax then you definitely should complete company vat registration process before you begin trading. This will likely
make sure you get a vat number, issue vat invoices, file your vat returns, and claim vat refunds so as to reduce the financial burden on your own business on account of duplicate taxation.
If you are planning to import goods or services from EU countries which have enveloped vat, you will certainly require to obtain registered with all the relevant vat authorities in your own country. You can utilize vat online services that will enable you sign up for a vat refund whenever you import services or goods that have already paid vat in the country of origin. When you are over the vat threshold limit set by the country in becoming a vat registered dealer, you can complete the necessary vat form to get your vat no and begin trading like a registered vat trader.
For instance, if you are already trading in the UK and have crossed over the minimum vat limit in taxable sales in the last Twelve months, then you can apply for company vat registration. You will need to contact your local hmrc vat department or customs and excise customs vat department to begin the procedure for vat registration. You can go to their website and fill in the web based form to put the ball rolling for quick registration. You will also have to do an in depth study on the actual vat rates about the goods that you propose to trade in, if you plan to start a fresh business.
While vat rules are very easy to comprehend, it might 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 also been paid before shipping it to your country. This move will help you to reclaim vat in those countries in order to get to actual costing figures for your products or services. You will also have to file regular vat returns stating your purchase, sales, vat collected and vat sum to be paid for that specific period. An efficient vat agent will be in a better position to deal with all your vat requirements so that you can focus on other avenues to increase revenues of your business.
You will find different vat rates on different goods and services while certain items and services may also be vat exempt. If you have not registered for vat then you can start trading but won’t be permitted to collect vat or claim any vat refunds until your business is vat registered. Anyway, most other firms that you contend with will insist on your vat registration before they commence business together with you so that the vat chain isn’t interrupted.
In case you have started an enterprise or are intending to do it in the near future then you need to obtain registered for uk vat in addition to eu vat, specifically if you plan to contend with other EU countries. This will enable you to claim vat which has previously been paid as well as control your product costs by remaining within 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