For those who have started a new business that plans to start trading in services or goods that attract vat or vat then you definitely 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 reduce the financial burden on your own business due to duplicate taxation.
If you are planning to import services or goods from EU countries which have enveloped vat, you’ll certainly require to get registered with all the relevant vat authorities in your own 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 can fill out the necessary vat form to get your vat no and start 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, you’ll be able to apply for company vat registration. You will need to speak to your local hmrc vat department or customs and excise customs vat department to begin the procedure 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 an in depth study about the actual vat rates about the goods that you propose to trade in, if you are planning to begin a fresh 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 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 reclaim vat in those countries so as to get to actual costing figures for your products or services. You will also need to file regular vat returns stating your purchase, sales, vat collected and vat sum to be paid for that particular period. A competent vat agent will be in a stronger position to handle all your vat requirements to help you focus on other avenues to boost revenues of your business.
You will find different vat rates on different services and goods while certain items and services are also vat exempt. If you haven’t registered for vat then you can start trading but will not 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 require your vat registration before they commence business together with you in order that the vat chain is not interrupted.
If you have started an enterprise or are planning to do so in the future then you need to obtain registered for uk vat as well as eu vat, especially if you want to deal with other EU countries. This may enable you to claim vat that 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 begin trading on a large scale in order to corner all benefits offered by vat.