For those who have started a fresh business that plans to start trading in goods or services that attract vat or value added tax then you should complete company vat registration process before you begin trading. This will make sure you 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 due to duplicate taxation.
If you plan to import services or goods from EU countries that have enveloped vat, you’ll certainly require to get registered with all the relevant vat authorities throughout your home country. You might use vat online services which will allow you sign up for a vat refund when you import services or goods which have already paid vat in the nation of origin. When you are over the vat threshold limit set by the country to turn into a vat registered dealer, you are able to fill out the required vat form so as to get your vat no and start trading as 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 last 12 months, then you can 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 start the process for vat registration. You can visit their webpage and fill in the online form to set the ball rolling for quick registration. You will also have to do an in depth study about the actual vat rates on the products that you propose to trade in, if you are planning to start a new business.
While vat rules are quite simple 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 might have already been paid before shipping it to your 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 sum to be paid for that particular period. A competent vat agent would be in a stronger position to handle 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 certainly start trading but won’t be allowed to collect vat or claim any vat refunds until your enterprise is vat registered. Anyway, almost every other businesses that you contend with will insist on your vat registration before they commence business together with you so that the vat chain isn’t interrupted.
If you have started an enterprise or are intending to do so in the future you will need to obtain 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 which has already been paid and also control your product costs by remaining while in the vat cycle. You should certainly complete company vat registration process before you start trading on a massive so as to corner all benefits offered by vat.