For those who have started a new business that intends 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 likely make sure you get a vat number, issue vat invoices, file your vat returns, and claim vat refunds so as to lower the financial burden on your own business due to duplicate taxation.
If you plan to import services or goods from EU countries which have enveloped vat, you will certainly require to obtain registered with all the relevant vat authorities in your own country. You might use vat online services that will enable you sign up for a vat refund whenever you import goods or services that 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 fill out the required vat form to get your vat no and begin trading like a registered vat trader.
For instance, if you are 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 apply for company vat registration. You will need to speak to your local hmrc vat department or the customs and excise customs vat department to begin the procedure for vat registration. You can visit their webpage and fill out the web based form to set the ball rolling for quick registration. You’ll also have to do an in depth study on the actual vat rates on the goods that you propose to trade in, if you are planning to start a fresh business.
While vat rules are quite simple to comprehend, it might 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 also been paid before shipping it to your country. This move will help you to reclaim vat in those countries in order to arrive at 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 particular period. A competent vat agent will be in a very better position to deal with 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 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 business is vat registered. Anyway, almost every other businesses that you deal with will require your vat registration before they commence business together with you so that the vat chain is not interrupted.
In case you have started a business or are planning to do it in the future you will need to get 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 within 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.