For those who have started a fresh business that intends to start trading in services or goods 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 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 that 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 allow you register for a vat refund whenever you import services or goods 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 fill out the necessary vat form to get your vat no and begin trading like a registered vat trader.
For example, if you are already trading in the UK and have crossed over the minimum vat limit in taxable sales in the previous 12 months, then you can apply for company vat registration. You need to speak to your local hmrc vat department or customs and excise customs vat department to start the process for vat registration. You can visit their website and fill out the online form to set the ball rolling for quick registration. You’ll also have to do an in depth study on the actual vat rates on the products that you propose to trade in, if you are planning to begin 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 reclaim vat in those countries in order to get to actual costing figures for the products or services. Additionally, you will have to file regular vat returns stating your purchase, sales, vat collected and vat amount to be paid for that particular period. A competent vat agent would be in a better position to deal with all your vat requirements so that you can concentrate on other avenues to boost revenues of your business.
There are 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 allowed to collect vat or claim any vat refunds until your business is vat registered. Anyway, most other businesses that you deal with will insist on your vat registration before they commence business together with you so that the vat chain is not interrupted.
In case you have started a business or are planning to do it in the future you will need to get registered for uk vat as well as eu vat, specifically if you want to contend with other EU countries. This may enable you to claim vat which has already been paid and also control your product costs by remaining within the vat cycle. You should certainly complete company vat registration process before you start trading on a large scale in order to corner all benefits offered by vat.