VAT Registration

VAT Registration & Submission Report

A value added tax (VAT) is indirect tax on the domestic consumption of goods and services, except those that are zero-rated (such as food) or are otherwise exempt (such as exports). VAT is placed on a product whenever value is added at a stage of production and at final sale. The amount of value-added tax that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed. From the perspective of the buyer, it is a tax on the purchase price.

Benefits of voluntary registration

There are potential cashflow advantages of being able to charge VAT on your sales and claim back VAT on your purchases, which you may benefit from depending on your circumstances. For example:

• if you sell zero-rated items and buy standard-rated items you would receive a VAT refund from HMRC
• if you have not yet sold anything or don’t sell anything during a VAT accounting period, you may still be able to claim VAT back on your purchases
• when you registered for VAT you can reclaim VAT that has been paid for you business purpose.
• being a VAT registered company increases trust among customers and suppliers

If you register for VAT voluntarily or as someone who must register, you have exactly the same responsibilities. You must keep all required VAT records and issue VAT invoices. You also have to complete and submit a VAT Return at regular intervals, along with your payment if one is due.