For those who 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 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 due to duplicate taxation.
If you plan to import services or goods from EU countries which have enveloped vat, you’ll certainly require to obtain registered with all the relevant vat authorities in your own country. You might use vat online services that will allow you register for a vat refund when you import goods or services which have already paid vat in the country of origin. When you are within the vat threshold limit set by the country to turn into a vat registered dealer, you can complete the necessary vat form so as to get your vat no and begin trading like a registered vat trader.
For example, if you are already trading in britain and 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 visit their website and fill in the web based form to set 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 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 plan to import goods from other EU States where vat might have already been paid before shipping it to the country. This move will help you reclaim vat in those countries in order to arrive at actual costing figures for the products or services. You will also have to file regular vat returns stating your purchase, sales, vat collected and vat sum to be paid for that specific period. An efficient vat agent will be in a stronger position to handle all your vat requirements so that you can focus on other avenues to increase revenues of your business.
You will find 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 will not be permitted to collect vat or claim any vat refunds until your enterprise is vat registered. Anyway, almost every other businesses 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.
In case you have started an enterprise or are intending to do so in the near future then you need to get registered for uk vat as well as eu vat, especially if you want to contend 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 in order to corner all benefits offered by vat.