Complete company vat registration process before you start trading
If you have started a fresh business that intends to start trading in goods or services that attract vat or value added tax 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 so as 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, you’ll certainly require to obtain registered with all the relevant vat authorities throughout your home country. You might use vat online services which will enable you register for a vat refund when you import services or goods that have already paid vat in the nation of origin. Once you are within the vat threshold limit set by the country to turn into a vat registered dealer, you can complete the required vat form to get your vat no and begin trading like a registered vat trader.
For example, if you are already trading in britain and 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 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 website and fill in the online form to put the ball rolling for quick registration. You’ll also need to do an in depth study about the actual vat rates about the goods that you propose to trade in, if you plan 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, particularly if you plan to import goods from other EU States where vat might have already been paid before shipping it to the country. This move will help you to reclaim vat in those countries so as to arrive at actual costing figures for your products. Additionally, you will need to file regular vat returns stating your purchase, sales, vat collected and vat sum to be paid for that particular period. An efficient vat agent would be in a very stronger position to deal with all your vat requirements to help you focus on other avenues to increase revenues of your business.
You will find different vat rates on different services and goods while certain items and services may also be vat exempt. If you have not 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 businesses that you deal with will require your vat registration before they commence business with you in order that the vat chain is not interrupted.
If you have started an enterprise or are planning to do so in the near future you will need to obtain registered for uk vat as well as eu vat, specifically if you plan to deal with other EU countries. This will allow 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 so as to corner all benefits offered by vat.