Why your business should register for GST
GST, or Goods and Services Tax, is quite similar to VAT that is imposed on many countries around the world. While it is mandatory for certain companies that expect their annual turnover to be over 75,000 EUR or more, if it’s less than that, then it’s optional. Under certain circumstances, it’s even possible to be exempt from it. However, voluntary application through GST registration services could be beneficial to a business. Here’s how.
Helps establish a presence
In competitive markets, establishing a presence is a big challenge, especially for start-ups. It’s mandatory for big corporations. Thus, voluntarily registering for it makes a company look as established as the “big boys” and lets clients know that you are serious about your business. When clients and vendors find out that your company is registered for GST, they automatically think that you are of a certain size and generate sizable revenue.
Boosts savings and investments
GST allows people to be taxed only when they spend on consumer goods and services. So, applying for it through GST registration services is quite good. Not only do individual tax rates are lower but saving and investments end up being exempt from taxation. Also, the more companies register, the more accurate the prediction of future revenue is. Because of this, people are allowed to save and invest money without the worry that it will be taxed.
Lower cost of administration and doing business
With GST, the customers are the real taxpayers and the businesses are merely conduits. This means that companies don’t have to bear any tax costs and it makes the end of the financial year noticeably easier. However, voluntary registration does come with its own responsibilities, though they are administrative.
GST is beneficial for business in more ways than the ones listed here, but these are the most important ones. Voluntary application through GST registration services can help not only the company but the consumers as well.