What is VAT?
VAT is a form of consumption tax – that is a tax applied to purchases of goods or services and other ‘taxable supplies’. For a business, VAT plays an important role and can be charged on a range of your goods and services. Charities will have different rules governing their VAT. But for many businesses, areas that are taxable include:
Sales of your goods and/or services
The hire or loan of your goods
Exchanges e.g. swapping a new product for the exchange of the customer’s old one
Staff sales e.g. staff meals
Business goods you use personally
The sale of business assets
Which business must apply for VAT registration
Most businesses have to register for VAT; this allows businesses to charge and recover VAT where applicable. In some countries, thresholds are in place before VAT registration is required. In the UK for example, businesses only need to register for VAT once their turnover exceeds more than £85,000 per annum. However, many countries, including most in the EU, have no VAT registration thresholds, so it is essential all businesses be registered for VAT in these countries.
It is essential to be proactive while trading internationally as VAT legislation rules vary between different countries. To understand and keep up to date with different VAT legislation requires continuous commitment, which can drain valuable businesses resources.
Applying for VAT Registration
We offer professional advice and guidance on VAT matters at a competitive price. To make your business operations simpler, we can register your business for VAT and then take care of your monthly or quarterly VAT returns.
At IGM, we pride ourselves on the efficient, accurate, and reliable service we deliver to our clients.
Contact us if you require assistance with your VAT registration and to book a free initial consultation.
The rules surrounding VAT returns are complex and continuously changing. To keep up to date with these rules requires dedication, which can be a drain on valuable businesses resources.
We can offer you excellent professional advice and guidance on VAT matters at a competitive price.
If you are interested, please contact us today for assistance with your VAT return, and to book a free consultation.