If you have started a fresh business that intends 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 lower the financial burden on your business on account of duplicate taxation.
If you plan 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 can utilize vat online services which will enable you register for a vat refund when you import services or goods which have already paid vat in the country of origin. Once you are over the vat threshold limit set by the country in becoming a vat registered dealer, you can fill out the required vat form so as to get your vat no and begin trading as a registered vat trader.
For example, if you are already trading in britain and also have crossed over the minimum vat limit in taxable sales in the previous Twelve months, you’ll be able to make an application for company vat registration. You will need to contact your local hmrc vat department or customs and excise customs vat department to start the procedure for vat registration. You can go to their website and fill out the online form to put the ball rolling for quick registration. You’ll also have to do a detailed study about the actual vat rates about the products that you propose to trade in, if you plan to begin a fresh business.
While vat rules are very easy to comprehend, it will make better sense to appoint a vat agent or vat consultant, especially if you intend 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 the products or services. You will also need to file regular vat returns stating your purchase, sales, vat collected and vat amount to be paid for that specific period. An efficient vat agent would be in a very stronger position to deal with all 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 are also vat exempt. If you haven’t registered for vat then you can start trading but will not 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 require your vat registration before they commence business together with you in order that the vat chain isn’t interrupted.
If 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, specifically if you plan to contend with other EU countries. This will allow you to claim vat that has already 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 in order to corner all benefits