For those who have started a new business that plans to start trading in goods or services that attract vat or vat then you should complete company vat registration process before you begin trading. This will
enable you to get a vat number, issue vat invoices, file your vat returns, and claim vat refunds in order to lower the financial burden on your own business on account of duplicate taxation.
If you are planning to import services or goods from EU countries which have enveloped vat, you will certainly require to obtain registered with the relevant vat authorities throughout your home country. You can utilize vat online services that will allow you sign up for a vat refund when you import goods or services that have already paid vat in the country of origin. Once you are within the vat threshold limit set by the country to turn into a vat registered dealer, you can fill out the necessary vat form to get your vat no and start trading as a registered vat trader.
For example, if you’re already trading in the UK and also have crossed over the minimum vat limit in taxable sales in the previous 12 months, you’ll be able to 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 process for vat registration. You can go to their webpage and fill out the online form to put the ball rolling for quick registration. You will also need to do a detailed study about the actual vat rates on the goods that you propose to trade in, if you are planning to begin a new business.
While vat rules are quite easy to comprehend, it will make better sense to appoint a vat agent or vat consultant, particularly if you intend to import goods from other EU States where vat might have also been paid before shipping it to the country. This move will help you to reclaim vat in those countries so as to get to actual costing figures for the products. Additionally, you will 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 stronger position to handle your vat requirements to help you concentrate 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 won’t be allowed to collect vat or claim any vat refunds until your business is vat registered. Anyway, almost every other firms that you contend with will require your vat registration before they commence business 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 get registered for uk vat as well as eu vat, especially if you want to deal with other EU countries. This will enable you to claim vat that has already been paid and also 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