For those who 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 start trading. This will 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 business on account of duplicate taxation.
If you are planning to import goods or services from EU countries that have enveloped vat, you will 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 sign up for a vat refund when you import services or goods vatregistrationnumber 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 are able to complete the required vat form to get your vat no and begin trading as a registered vat trader.
For example, if you are already trading in the UK 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 speak to your local hmrc vat department or customs and excise customs vat department to begin the procedure for vat registration. You can go to their website and fill out the web based form to put the ball rolling for quick registration. You’ll also have to do a detailed study about the actual vat rates about the products 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, especially if you plan to import goods from other EU States where vat would have also 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 need 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 very stronger position to handle all your vat requirements so that you can focus on other avenues to boost revenues of your business.
There are different vat rates on different goods and services while certain items and services are also 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, most other businesses that you deal with will require your vat registration before they commence business with you so that the vat chain is not interrupted.
If you have started an enterprise or are planning 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 contend with other EU countries. This may allow you to claim vat that has previously been paid and also control your product costs by remaining while in 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 offered by vat.