4) VAT – Is There Any Advantage Of Voluntarily Registering For VAT Before I Have To?

You may be thinking, why would there be benefits to charging extra costs to my customers? But there is always a silver lining.

  • Being VAT registered means you can reclaim the input tax you have been charged when buying goods for your company-There are some goods and expenses which you will incur where you have not been charged VAT. There is no VAT on insurance, finance, credit, education, training and fund raising events, the majority of other goods you will be charged VAT.
  • Being VAT registered adds more credibility to your business, making it appear larger than it possibly is.
  • Some companies only deal with VAT registered companies-this will give your company more opportunities to deal with more suppliers.
  • Customers/clients that are VAT registered can reclaim the VAT you charge them-not necessarily an advantage for you but again it creates a more professional image and the customer may then be more inclined to use you again in the near future knowing you are both VAT registered and that they can possibly reclaim their input tax also.

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