Complete company vat registration process before you start trading
If you have started a fresh business that plans to start trading in services or goods that attract vat or value added tax then you should complete company vat registration process before you start trading. This will
make sure you 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 plan to import goods or services from EU countries that 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 that will allow you sign up for a vat refund when you import services or goods which have already paid 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 are able to fill out the required vat form to get your vat no and begin 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 previous Twelve months, then you can make an application for company vat registration. You need to contact your local hmrc vat department or customs and excise customs vat department to start the process 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 a detailed study about 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 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 to reclaim vat in those countries so as to arrive at actual costing figures for the products. 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. An efficient vat agent will be in a very stronger position to deal with 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 haven’t registered for vat then you can start trading but will not be allowed to collect vat or claim any vat refunds until your business is vat registered. Anyway, most other firms that you deal with will require your vat registration before they commence business with you in order that the vat chain isn’t interrupted.
In case you have started a business or are planning to do it in the future you will need to get registered for uk vat as well as eu vat, especially if you plan to deal with other EU countries. This may allow you to claim vat that has already been paid and also control your product costs by remaining while in the vat cycle. You should certainly complete company vat registration process before you start trading on a massive so as to corner all benefits