For those who have started a fresh business that intends 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 on account of duplicate taxation.
If you plan to import services or goods from EU countries which have enveloped vat control vat, you will certainly require to get registered with all the relevant vat authorities throughout your home country. You can utilize vat online services which will allow you register for a vat refund when you import goods or services which have already paid vat in the nation of origin. Once you are over the vat threshold limit set by your country to turn into a vat registered dealer, you are able to fill out the necessary vat form to get your vat no and begin trading like 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, you'll be able to apply for company vat registration. You need to contact your local hmrc vat department or the customs and excise customs vat department to start the procedure for vat registration. You can visit their webpage and fill out the online form to set the ball rolling for quick registration. You will also need to do an in depth study about the actual vat rates on the goods that you propose to trade in, if you are planning to begin a new business.
While vat rules are very easy to comprehend, it might make better sense to appoint a vat agent or vat consultant, especially if you intend 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 reclaim vat in those countries so as to arrive at actual costing figures for your products or services. 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 very stronger position to deal with your vat requirements to help you concentrate on other avenues to increase revenues of your business.
There are different vat rates on different goods and services while certain items and services may also be 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 business is vat registered. Anyway, almost every other firms 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 future you will need to get registered for uk vat as well as eu vat, specifically if you want to deal with other EU countries. This will enable you to claim vat which has previously been paid and also control your product costs by remaining within the vat cycle. You ought to certainly complete company vat registration process before you begin trading on a large scale in order to corner all benefits offered by vat.