Complete company vat registration process before you start trading

For those who have started a new business that plans to start trading in goods or services that attract vat or value added tax then you definitely 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 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 get registered with all the relevant vat authorities throughout your home country. You can utilize vat online services that will enable you sign up for a vat refund whenever you import goods or services that have already paid vat in the country of origin. Once you are over the vat threshold limit set by your country to turn into a vat registered dealer, you can fill out the necessary vat form so as to get your vat no and begin trading as 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 last Twelve months, you’ll be able to make an application for company vat registration. You will need to speak to your local hmrc vat department or customs and excise customs vat department to begin the procedure for vat registration. You can go to their website and fill out the web based form to put 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 easy to comprehend, it will make better sense to appoint a vat agent or vat consultant, particularly if you plan to import goods from other EU States where vat would have already been paid before shipping it to the country. This move will help you reclaim vat in those countries in order to arrive at actual costing figures for the products. Additionally, you will have to file regular vat returns stating your purchase, sales, vat collected and vat sum to be paid for that particular period. A competent vat agent would be in a better position to deal with all your vat requirements so that you can focus on other avenues to boost revenues of your business.

There are different vat rates on different goods and services while certain items and services may also be vat exempt. If you haven’t 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 deal with will require your vat registration before they commence business with you so that the vat chain isn’t interrupted.

If you have started an enterprise or are intending to do so in the near future you will 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 that has previously been paid as well as control your product costs by remaining within the vat cycle. You should certainly complete company vat registration process before you start trading on a large scale in order to corner all benefits offered by vat.