If you have started a new business that plans to start trading in services or goods that attract vat or value added tax then you definitely 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 so as to lower the financial burden on your own business due to duplicate taxation.
If you are planning to import services or goods from EU countries that have enveloped vat, you will certainly require to get registered with the relevant vat authorities in your own country. You might use vat online services which will enable you sign up for a vat refund when you import services or goods that have already paid vat in the nation of origin. When you are over the vat threshold limit set by your country to turn into a vat registered dealer, you can fill out the necessary vat form to get your vat no and start trading as a registered vat trader.
For example, 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 make an application for company vat registration. You need to contact your local hmrc vat department or the customs and excise customs vat department to begin the process for vat registration. You can visit their website and fill in the web based form to put the ball rolling for quick registration. You will also have to do a detailed study on the actual vat rates on the goods that you propose to trade in, if you plan to start a fresh business.
While vat rules are very simple to comprehend, it might 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 to reclaim vat in those countries so as to get to actual costing figures for your products. Additionally, you will have to file regular vat returns stating your purchase, sales, vat collected and vat amount to be paid for that specific period. An efficient vat agent would be in a stronger position to handle your vat requirements so that you can concentrate on other avenues to increase revenues of your business.
There are different vat rates on different services and goods while certain items and services may also be vat exempt. If you have not 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, almost every other firms that you contend with will insist on your vat registration before they commence business together with you so that the vat chain isn’t interrupted.
If you have started an enterprise or are intending to do so in the near future you will need to obtain registered for uk vat as well as eu vat, specifically if you plan to deal with other EU countries. This may enable you to claim vat which has previously been paid and also control your product costs by remaining while in the vat cycle. You ought to certainly complete company vat registration process before you begin trading on a massive in order to corner all benefits