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 should complete company vat registration process before you start 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 goods or services from EU countries that have enveloped vat, you’ll certainly require to obtain registered with the relevant vat authorities in your own country. You might use vat online services that will allow you register for a vat refund whenever you import services or goods vatregistrationnumber which 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 complete the required 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 the UK and also have crossed over the minimum vat limit in taxable sales in the previous Twelve months, then you can 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 procedure for vat registration. You can go to their webpage and fill out the online form to set the ball rolling for quick registration. You’ll also need to do an in depth study about the actual vat rates on the products that you propose to trade in, if you plan to begin a fresh business.
While vat rules are quite easy 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 might have also been paid before shipping it to the country. This move will help you reclaim vat in those countries in order to get to actual costing figures for the 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 very better position to handle your vat requirements so that you can focus on other avenues to increase 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 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 business is vat registered. Anyway, most other firms that you contend with will insist on your vat registration before they commence business together 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 you will need to obtain registered for uk vat in addition to eu vat, especially if you want to deal with other EU countries. This will allow you to claim vat which has previously 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.