VAT Guide and Advice For Business Starters
People planning to start a business in the UK should learn the right ways no matter how small or big the business is. When you open a shop, store, or company, it is necessary to get familiar with the legalities encompassed. As a starter, you have this anticipation that your company will grow, and it is your goal to ensure the business’ growth. Otherwise, you should not be venturing. Well, one of the things you should be keen about is the value-added tax on products or VAT.
This is why beginners should really ask advice from people who have been in the field for a while. There is no substitute for information which you can get from experienced businessmen. You cannot rely on your instincts because business needs much more than instincts. If you are thinking that aspects like VAT can be disregarded until later in the course of your business, you should reconsider. Every business owner is mandated to register for Value Added Tax. You shall be filing taxes at the end of the year anyway and you need to submit your remittances on time. Procrastination may have serious consequences.
The amount of value-added tax depends on the value of the goods or services which includes those being imported and exported. As you might have heard, the rates are either 17.5% or zero. Most goods and services are subject to value-added tax and they are called taxable supplies, but not all are registered though. All businesses should be enlisted for value-added tax once they produce taxable goods exceeding established limits. For instance, in the UK when the taxable supplies exceeded the value of $61,000 in the previous year, the seller or merchant should register within a month (30 days), otherwise, he could face penalties.
Computation of taxes on goods can be handled by accountants and it’s only an instance when these professionals are needed in the business. Their role within the company spans more than just computing taxes.
Value-added tax raises the prices of goods bought by consumers. In other words, the added cost is passed on to buyers. However, the major purpose of this tax on goods is to provide additional revenue to the government. This tax shall help uplift the economy of a country and because of this many countries around the world have imposed this kind of tax on most goods and services.
If you have questions about value-added tax and its implication on your business, contact a consultant with sufficient background on taxation, value-added tax, and accounting. You are actually looking for professionals like chartered accountants who specialize in taxation and related fields. You do not need to look further because you can search for qualified professionals on the internet. You can find them at accounting firms, but make sure to find a reputable firm with a good range of accountancy services.