If you have started a new business that intends 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 start trading. This will likely enable you to get a vat number, issue vat invoices, file your vat returns, and claim vat refunds so as 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 in your own country. You might use vat online services which will enable you register for a vat refund whenever you import services or goods which have already paid vat in the country of origin. Once you are within the vat threshold limit set by your country in becoming a vat registered dealer, you are able to complete the necessary vat form to get your vat no and begin trading like a registered vat trader.
For instance, if you are already trading in britain and have crossed over the minimum vat limit in taxable sales in the last 12 months, you’ll be able to make an application for company vat registration. You need to speak to your local hmrc vat department or the customs and excise customs vat department to start the process for vat registration. You can visit their website and fill in 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 start a fresh business.
While vat rules are very simple 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 already been paid before shipping it to the country. This move will help you to reclaim vat in those countries so as to arrive at actual costing figures for your products. You will also need 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 will be in a stronger position to handle your vat requirements to help you concentrate on other avenues to increase revenues of your business.
You will find different vat rates on different goods and services while certain items and services are also vat exempt. If you haven’t registered for vat then you can certainly start trading but will not be permitted to collect vat or claim any vat refunds until your business is vat registered. Anyway, almost every other firms that you deal with will insist on your vat registration before they commence business together with you in order that the vat chain isn’t interrupted.
In case you have started an enterprise or are planning to do it in the near future then you need to get registered for uk vat in addition to eu vat, especially if you plan to deal with other EU countries. This may allow you to claim vat which 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 massive so as to corner all benefits offered by vat.