Complete company vat registration process before starting trading

by admin on 2017/12/01

If you 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 in order to reduce the financial burden on your business on account of duplicate taxation.

If you are planning to import services or goods from EU countries that have enveloped vat, you’ll certainly require to get registered with the relevant vat authorities throughout your home country. You might use vat online services which will enable you sign up for a vat refund when you import services or goods that have already paid vat in the nation 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 required vat form so as to get your vat no and begin trading like a registered vat trader.

For instance, if you are already trading in britain and have crossed over the minimum vat limit in taxable sales in the previous 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 begin the procedure for vat registration. You can go to their website and fill in the online form to set the ball rolling for quick registration. You’ll also need to do an in depth 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 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 already been paid before shipping it to your country. This move will help you to reclaim vat in those countries in order to get to actual costing figures for the products or services. Additionally, you will have 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 concentrate 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 start trading but will not be allowed to collect vat or claim any vat refunds until your enterprise is vat registered. Anyway, almost every other businesses that you deal with will require your vat registration before they commence business together with you so that the vat chain is not interrupted.

If you have started a business or are planning to do it in the future then you need to get registered for uk vat as well as 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 begin trading on a large scale in order to corner all benefits offered by vat.

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