If you 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 make sure you 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 are planning 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 in your own country. You can utilize vat online services which will allow you sign up for a vat refund when you import goods or services which have already paid vat http://vatcontrol.com/vat in the nation of origin. Once you are within the vat threshold limit set by your 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 instance, 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 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 website and fill in the web based form to set the ball rolling for quick registration. You will also have to do a detailed study on the actual vat rates about the goods that you propose to trade in, if you plan to begin a fresh business.
While vat rules are very simple 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 your country. This move will help you to reclaim vat in those countries in order to arrive at actual costing figures for your products or services. You will also need to file regular vat returns stating your purchase, sales, vat collected and vat amount to be paid for that specific period. A competent vat agent would be in a better position to deal with all your vat requirements to help you 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 certainly start trading but won’t be allowed 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.
In case you have started an enterprise or are intending to do it in the near future then you need to obtain registered for uk vat in addition to eu vat, specifically if you plan to deal with other EU countries. This will allow you to claim vat which has already been paid and also control your product costs by remaining while in the vat cycle. You ought to certainly complete company vat registration process before you begin trading on a large scale so as to corner all benefits offered by vat.