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 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 in order to reduce the financial burden on your own business due to duplicate taxation.
If you are planning to import goods or services from EU countries which 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 that will enable you register for a vat refund when you import goods or services that have already paid vat in the country of origin. Once you are within the vat threshold limit set by the country in becoming a vat registered dealer, you are able to fill out the required vat form 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 12 months, then you can make an application for company vat registration. You will need to contact your local hmrc vat department or customs and excise customs vat department to start the procedure for vat registration. You can visit their webpage and fill in the online form to put the ball rolling for quick registration. You will also have to do an in depth study on the actual vat rates on the products that you propose to trade in, if you are planning 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, especially 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 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 sum to be paid for that specific period. A competent vat agent would be in a better position to handle your vat requirements to help you concentrate 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 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 firms that you contend with will require your vat registration before they commence business with you in order that the vat chain isn’t interrupted.
In case you have started a business or are planning to do so in the near future then you 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 already been paid as well as control your product costs by remaining within the vat cycle. You should certainly complete company vat registration process before you begin trading on a large scale in order to corner all benefits