For those who have started a fresh business that plans 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 start 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 business on account of duplicate taxation.
If you are planning to import services or goods from EU countries which have enveloped vat, you’ll certainly require to obtain registered with all the relevant vat authorities throughout your home country. You might use vat online services which will enable you register for a vat refund when you import services or goods that have already paid vat in the country of origin. Once you are over 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 so as to get your vat no and start trading as 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 previous 12 months, you’ll be able to apply for company vat registration. You need to contact your local hmrc vat department or the customs and excise customs vat department to start the procedure for vat registration. You can visit their website and fill out the web based form to put the ball rolling for quick registration. You’ll also need to do an in depth study about the actual vat rates about the goods that you propose to trade in, if you plan to start a fresh business.
While vat rules are quite simple 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 would have already been paid before shipping it to your country. This move will help you reclaim vat in those countries so as to arrive at 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 particular period. A competent vat agent will be in a very better position to deal with all your vat requirements to help you focus on other avenues to boost 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 haven’t registered for vat then you can certainly start trading but won’t be permitted to collect vat or claim any vat refunds until your business is vat registered. Anyway, most other firms that you deal with will require your vat registration before they commence business with you so that the vat chain is not interrupted.
If you have started a business or are intending to do so in the near future then you need to obtain registered for uk vat as well as eu vat, specifically if you want to contend with other EU countries. This may allow you to claim vat that has previously been paid and also control your product costs by remaining within the vat cycle. You should certainly complete company vat registration process before you begin trading on a large scale in order to corner all benefits offered by vat.