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 start 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 on account of duplicate taxation vat number.
If you plan to import services or goods from EU countries that have enveloped vat, you will certainly require to get registered with all the relevant vat authorities in your own country. You can utilize vat online services which will allow you register for a vat refund when you import services or goods that have already paid vat in the country of origin. When you are within the vat threshold limit set by your country in becoming a vat registered dealer, you can fill out the necessary 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 have crossed over the minimum vat limit in taxable sales in the previous 12 months, you’ll be able to apply for company vat registration. You will need to contact your local hmrc vat department or customs and excise customs vat department to begin the process for vat registration. You can visit their webpage and fill out the online form to set the ball rolling for quick registration. You will also need 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 begin a new 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 plan to import goods from other EU States where vat would have already been paid before shipping it to your country. This move will help you reclaim vat in those countries in order to arrive at actual costing figures for your products. You will also have to file regular vat returns stating your purchase, sales, vat collected and vat amount to be paid for that specific period. A competent vat agent would be in a better 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 services and goods while certain items and services are also vat exempt. If you haven’t 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, most other firms that you deal with will require your vat registration before they commence business with you in order that the vat chain isn’t interrupted vat number.
If you have started an enterprise or are planning to do it in the near future you will need to get registered for uk vat in addition to eu vat, specifically if you want to contend 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 while in the vat cycle. You should certainly complete company vat registration process before you start trading on a large scale so as to corner all benefits offered by vat.