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 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 so as to reduce 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 will certainly require to get registered with the relevant vat authorities in your own country. You can utilize vat online services that will enable you register for a vat refund when 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 start trading as a registered vat trader.
For example, if you are already trading in the UK and have crossed over the minimum vat limit in taxable sales in the previous 12 months, then you can 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 visit their website and fill out the online form to set the ball rolling for quick registration. You will also need to do a detailed study on the actual vat rates on the products that you propose to deal in, if you plan to start a new business.
While vat rules are quite simple to comprehend, it might make better sense to appoint a vat agent or vat consultant, especially if you plan to import goods from other EU States where vat would have already been paid before shipping it to your country. This move will help you to reclaim vat in those countries so as 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 particular period. An efficient vat agent would be in a better position to handle all your vat requirements so that you can concentrate on other avenues to increase revenues for your business.
There are different vat rates on different goods and services while certain items and services are also 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 business is vat registered. Anyway, most other businesses that you deal with will insist on your vat registration before they commence business with you so that the vat chain is not interrupted.
If you have started a business or are planning to do so in the near future then you need to get registered for uk vat as well as eu vat, especially if you plan to deal with other EU countries. This will enable you to claim vat that has already been paid and also 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 so as to corner all benefits offered by vat.