A beginner's guide: Reasons To Hire A VAT Consultant For

Your Business

INTRODUCTION• At first glance, VAT looks like one more aspect of your business

that adds to your administrative tedium. As a small businessowner, you want your business to have the most tax efficient wayV and VAT is a common area where business owners are lost.

• With each new law introduced, the need to understand andcomply with it becomes a necessity. VAT is a law where you needa clear understanding of how to run your business smoothly. Thereare many VAT consultant available in the market, which will helpyou process your paperwork in lieu of advisory fees. In this article,we will take a look at the importance of a VAT advisor and theneed to understand this law.

WHAT IS VAT?

• Value Added Tax is a tax addedto most goods and services whichprovide by the companies. It islevied on goods and services and isan ad valorem tax, which isproportional to the value of thesupply it makes.

• All VAT rated goods and servicesare known as “taxable supplies”. Itmust be charged on taxablesupplies since when business wasregistered. Its value is called as“taxable turnover”.

WHAT ARE THE BENEFITS OF REGISTERING VAT?

The standard rate of VAT will apply to most goods andservices sold. If you have a small business, here are list ofbenefits for being VAT registered.

You get a VAT registration number

You can claim VAT refunds

You can improve your business image

YOU GET A VAT REGISTRATION NUMBER

This may not be like too exciting, through displayingyour VAT registration number on documents andwebsite ,you can benefit for your business. This willadd more creditability to business and also givehonourable and professional image.

YOU CAN CLAIM VAT REFUNDSAfter registered it once, you can reclaim for VAT on allgoods and services for business. It must be balancedbetween what business is charging and receiving allpayments all over the year. If you have invested onequipment, IT or machinery ,you are able to reclaimlarge amount of VAT.

YOU CAN IMPROVE YOUR BUSINESS IMAGE

If you have a small business, most of people areaware of threshold VAT, this is the anotherbenefits of a being a VAT registered. After that ,you can appear to your customers that you arebigger than actually by displaying VAT number.

It can also help you while dealing with otherbusiness. Normally, some of business prefer it , ifyou can raise a VAT invoice.

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