For those who have started a fresh business that intends to start trading in goods or services that attract vat or vat then you definitely should complete company vat registration process before you begin trading. This will 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 on account of duplicate taxation.
If you are planning to import services or goods from EU countries that have enveloped vat, you’ll certainly require to obtain registered with the relevant vat authorities in your own country. You can utilize vat online services that will enable you sign up for a vat refund when you import services or goods that have already paid vat in the country of origin. Once you are over the vat threshold limit set by the country to turn into a vat registered dealer, you can fill out the necessary vat form so as to get your vat no and begin trading as a registered vat trader.
For instance, if you’re already trading in the UK and have crossed over the minimum vat limit in taxable sales in the last 12 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 go to their webpage and fill in the online form to put the ball rolling for quick registration. You will also need to do an in depth study about the actual vat rates about the products that you propose to trade in, if you plan to start a new 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 would have already been paid before shipping it to the country. This move will help you to 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 amount to be paid for that specific period. An efficient vat agent will be in a better position to handle 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 goods and services while certain items and services may also be vat exempt. If you have not registered for vat then you can start trading but won’t be permitted 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 a business or are planning to do it in the near future then you need to obtain 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 already 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 large scale in order to corner all benefits offered by vat.