For those who have started a new business that plans 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 begin trading. This will enable you to get a vat number, issue vat invoices, file your vat returns, and claim vat refunds so as to lower the financial burden on your business due to duplicate taxation vat verification.
If you are planning to import goods or services from EU countries which have enveloped vat, you will certainly require to get registered with the relevant vat authorities in your own country. You can utilize vat online services that will enable you register for a vat refund whenever you import goods or services which have already paid vat in the nation of origin. Once you are over the vat threshold limit set by the country to turn into a vat registered dealer, you are able to complete the required vat form so as to get your vat no and start trading as a registered vat trader.
For example, if you’re already trading in the UK and also 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 customs and excise customs vat department to begin the process for vat registration. You can go to their webpage and fill out the online form to set the ball rolling for quick registration. You’ll also have to do a detailed study about the actual vat rates about the goods that you propose to trade in, if you plan to begin 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 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 arrive at actual costing figures for the products or services. You will also 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 very better position to handle your vat requirements to help you focus on other avenues to increase revenues of your business.
There are 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 contend with will require your vat registration before they commence business with you so that the vat chain is not interrupted vat verification.
In case you have started an enterprise or are planning to do it in the near future then you need to obtain registered for uk vat as well as eu vat, especially if you plan to deal with other EU countries. This will enable you to claim vat which has already been paid as well as control your product costs by remaining while in 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.