Things to Know about VAT Registration Tax
If your business is making sales, you will not charge your customers with VAT unless you have been registered to do so. Sales wherein VAT is normally charged are known as VATable sales or taxable sales. Sales exempted from VAT or those not within the scopes of VAT are not considered taxable sales.
You just need to proceed with VAT tax registration if the yearly taxable sales of your business are more than the limit set by the authorities.
Should You Bother with VAT Tax Registration?
If your yearly taxable sales are more than the set limit or these are set to go beyond this limit for the next 30 days, you need to deal with VAT registration tax or also known as compulsory registration.
There are instances when you might want to register before reaching the threshold. It is known as voluntary registration that helps with your cash flow since VAT registration lets your business reclaim input VAT on the costs.
