If you 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 likely make sure you 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 due to duplicate taxation.
If you are planning to import services or goods from EU countries which have enveloped vat, you will certainly require to get registered with the relevant vat authorities throughout your home country. You might use vat online services which will allow you register for a vat refund when you import goods or services vatregistrationnumber that have already paid vat in the country of origin. When you are within the vat threshold limit set by the country in becoming a vat registered dealer, you can fill out the necessary vat form so as to get your vat no and start trading like a registered vat trader.
For example, if you’re already trading in the UK 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 will need to contact your local hmrc vat department or customs and excise customs vat department to begin 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 have to do an in depth 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 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 might have also been paid before shipping it to the country. This move will help you reclaim vat in those countries so as to get to actual costing figures for the products or services. Additionally, you will need to file regular vat returns stating your purchase, sales, vat collected and vat sum to be paid for that specific period. An efficient vat agent will be in a very stronger 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 goods and services 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 enterprise is vat registered. Anyway, most other businesses that you contend with will insist on 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 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 may 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 begin trading on a large scale in order to corner all benefits offered by vat.