If you 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 on account of duplicate taxation.
If you plan to import goods or services 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 whenever you import goods or services which have already paid vat in the nation of origin. When 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 begin trading like a registered vat trader.
For example, 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 speak to your local hmrc vat department or the customs and excise customs vat department to start the process for vat registration. You can go to their website and fill in the web based form to put the ball rolling for quick registration. You will also need to do an in depth study on the actual vat rates about the products that you propose to trade in, if you are planning to begin a fresh business.
While vat rules are very simple 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 so as to get to 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 would be in a better position to handle all your vat requirements so that you can focus on other avenues to boost 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 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 deal with will require your vat registration before they commence business together with you so that the vat chain is not interrupted.
In case you have started a business or are intending to do it in the near future you will need to obtain registered for uk vat in addition to eu vat, specifically if you want to deal with other EU countries. This may allow you to claim vat which has previously been paid as well as 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 massive in order to corner all benefits offered by vat.