Starting a business? Basic things to know about VAT
So, you’re ready to start a global business and provide services for people all around the world, but when it comes to such topics as VAT and all it entails, it becomes a tad bit confusing? No worries, there are a lot of companies, such as 1stopvat.com, ready to come to your aid and help your business with such things as filing a simple VAT submission.
What is VAT?
VAT, or Value-Added Tax, is a consumption tax applied to purchases of goods and services. Although the customer is the one paying for the tax when they’re buying the product, businesses have to include this tax into the purchase price of said product.
Taxable VAT includes such things as:
- Sales of goods and services
- Business goods for personal use
- Business asset sales
As a business, you must charge VAT on your products and services, and report the amount charged. Later, you can even reclaim VAT on business-related purchases. To be able to do these things, you must register for VAT in order to do any VAT submission, which can be made easier by applying to 1stopvat.com, which registers, manages and provides tax advisory services for businesses.
Businesses can reclaim VAT on products and services which are specifically used for the operation of the business. You can reclaim VAT on such things as:
- Staff travel expenses
- Business mobile service plans
- Business vehicles (plus fuel and maintenance cost)
But not all things are eligible for reclaims, which include:
- Items/services purely for private use
- Goods bought from other EU countries
When broken down to basics, VAT is not a difficult thing to understand, just remember that you have to register for VAT and apply it to your products accordingly. Now, managing all VAT documents is another time-consuming thing, but even the most basic VAT submission can be made easy with the help of professionals, which 1stopvat.com just happens to offer.