Complete company vat registration process before starting trading
If you have started a new 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 start trading. This will
enable you to get a vat number, issue vat invoices, file your vat returns, and claim vat refunds in order to reduce the financial burden on your own business due to duplicate taxation.
If you are planning to import goods or services from EU countries which have enveloped vat, you will certainly require to get registered with the relevant vat authorities in your own country. You can utilize vat online services which will allow you sign up for a vat refund whenever you import goods or services that have already paid vat in the nation of origin. Once you are over the vat threshold limit set by the country in becoming a vat registered dealer, you are able to complete the necessary vat form so as to get your vat no and start 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, 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 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 have to do an in depth study on the actual vat rates on the goods that you propose to trade in, if you plan to start a new business.
While vat rules are quite simple to comprehend, it will make better sense to appoint a vat agent or vat consultant, especially if you plan 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. You will also need to file regular vat returns stating your purchase, sales, vat collected and vat sum to be paid for that specific period. An efficient vat agent will be in a very better position to handle your vat requirements so that you can focus on other avenues to increase revenues of your business.
There are 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 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 together with you so that the vat chain isn’t interrupted.
If you have started an enterprise or are intending to do so in the future you will need to obtain registered for uk vat as well as eu vat, specifically if you want 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 begin trading on a large scale so as to corner all benefits