Complete company vat registration process before starting trading
If you 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 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 business due to duplicate taxation.
If you are planning to import services or goods from EU countries that have enveloped vat, you will certainly require to obtain registered with all the relevant vat authorities throughout your home country. You might use vat online services that will allow you register for a vat refund when you import services or goods which have already paid vat in the country of origin. When you are within the vat threshold limit set by your country in becoming a vat registered dealer, you can fill out the required vat form to get your vat no and start trading like a registered vat trader.
For example, if you’re already trading in britain and have crossed over the minimum vat limit in taxable sales in the last Twelve months, you’ll be able to 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 go to 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 about the products that you propose to trade in, if you plan 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 intend 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 to reclaim vat in those countries in order to get to actual costing figures for your products. Additionally, you will need to file regular vat returns stating your purchase, sales, vat collected and vat amount to be paid for that particular period. A competent vat agent will be in a better position to handle all your vat requirements so that you can concentrate 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 are also 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 firms that you deal with will require your vat registration before they commence business with you so that the vat chain is not interrupted.
In case you have started an enterprise or are intending to do so in the near future then you need to obtain registered for uk vat in addition to eu vat, especially if you want to deal with other EU countries. This will allow you to claim vat which has previously been paid as well as 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