For those who have started a new business that intends to start trading in goods or services that attract vat or vat then you should complete company vat registration process before you begin trading. This will likely enable you to get a vat number, issue vat invoices, file your vat returns, and claim vat refunds in order to lower the financial burden on your own business on account of duplicate taxation.
If you plan to import services or goods from EU countries that have enveloped vat, you will certainly require to obtain registered with the relevant vat authorities in your own country. You might use vat online services that will enable you sign up for a vat refund when you import goods or services which 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 can complete the necessary vat form so as to get your vat no and start trading as a registered vat trader.
For instance, if you’re already trading in britain and have crossed over the minimum vat limit in taxable sales in the last Twelve 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 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 have to do a detailed study on 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 quite 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 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 or services. Additionally, you will have to file regular vat returns stating your purchase, sales, vat collected and vat amount to be paid for that particular period. An efficient vat agent would be in a stronger position to deal with all your vat requirements so that you can focus on other avenues to boost revenues of your business.
You will find 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 permitted to collect vat or claim any vat refunds until your enterprise is vat registered. Anyway, almost every other firms that you contend with will insist on your vat registration before they commence business with you in order that the vat chain is not interrupted.
If you have started an enterprise or are intending to do so in the future then you need to obtain registered for uk vat in addition to eu vat, especially if you plan to deal with other EU countries. This may enable you to claim vat which has previously been paid as well as 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.