If you have started a new business that plans 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 likely enable you to get a vat number, issue vat invoices, file your vat returns, and claim vat refunds so as to lower the financial burden on your business due to duplicate taxation vies.
If you plan to import services or goods from EU countries that have enveloped vat, you’ll certainly require to obtain registered with the relevant vat authorities throughout your home country. You might use vat online services that will allow you sign up for a vat refund when you import goods or services that have already paid vat in the country of origin. When you are over the vat threshold limit set by the country in becoming a vat registered dealer, you can complete the necessary vat form to get your vat no and start trading as a registered vat trader.
For example, if you are already trading in the UK and also have crossed over the minimum vat limit in taxable sales in the last 12 months, you’ll be able to apply for company vat registration. You will 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 in the web based form to set the ball rolling for quick registration. You will also have 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 start a fresh business.
While vat rules are quite easy to comprehend, it might 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 reclaim vat in those countries in order to get to actual costing figures for the products or services. Additionally, you will 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 would be in a stronger 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 are also 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 business is vat registered. Anyway, most other firms that you contend with will insist on your vat registration before they commence business with you so that the vat chain is not interrupted vat number.
In case you have started a business or are planning to do so in the near future then you need to get registered for uk vat in addition to eu vat, especially if you plan to contend with other EU countries. This may enable you to claim vat which has already 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 offered by vat.