If you have started a fresh business that plans 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 make sure you get a vat number, issue vat invoices, file your vat returns, and claim vat refunds in order to reduce the financial burden on your own business due to duplicate taxation.
If you are planning to import goods or services from EU countries that have enveloped vat, you will certainly require to obtain registered with all the relevant vat authorities throughout your home country. You can utilize vat online services that will enable you sign up for a vat refund whenever you import goods or services that have already paid vat in the nation of origin. Once you are within the vat threshold limit set by your country to turn into a vat registered dealer, you are able to complete the required vat form to get your vat no and begin trading like a registered vat trader.
For example, if you’re already trading in britain and have crossed over the minimum vat limit in taxable sales in the previous Twelve months, then you can make an application for company vat registration. You will need to speak to your local hmrc vat department or customs and excise customs vat department to start the procedure for vat registration. You can go to their webpage and fill in the online form to put the ball rolling for quick registration. You will also have to do an in depth study on the actual vat rates on the goods that you propose to trade in, if you plan to start a new 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 your country. This move will help you to reclaim vat in those countries in order to arrive at actual costing figures for your products. 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. A competent vat agent would be in a very better position to handle your vat requirements so that you can concentrate on other avenues to increase revenues of your business.
You will find different vat rates on different services and goods while certain items and services may also be vat exempt. If you haven’t registered for vat then you can start trading but won’t be allowed to collect vat or claim any vat refunds until your enterprise is vat registered. Anyway, most other firms 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 a business or are intending to do it in the future then you need to get registered for uk vat as well as eu vat, specifically if you want to contend with other EU countries. This will allow you to claim vat which has previously been paid as well as control your product costs by remaining within the vat cycle. You should certainly complete company vat registration process before you start trading on a massive so as to corner all benefits offered by vat.