For many business owners, business tax services offer one of the best ways to navigate the often confusing world of VAT (Value Added Tax) regulations. VAT requirements, registration, returns and other related aspects can all be handled by a reliable accounting services company on behalf of the business owner, to ensure that the process is handles effectively and efficiently. Outsourcing a business tax services expert can also help businesses save costs, which further adds to the benefits of approaching a renowned accounting firm such as PATC.
One of the most commonly asked questions that many business owners ask when it comes to VAT is how they can trim a VAT bill. The legal implications of withholding important criteria or trying to take short cuts are extremely serious, but with the help of your business tax services expert, you will be able to reduce your bill legally and efficiently.
Before you can begin to do this however, you will need to understand how the VAT process works. The basic criteria for VAT are as follows:
- VAT applies generally to transactions relating to items and services.
- VAT is proportional to the price charged for these items.
- VAT is charged at each stage of the production and distribution process.
- Business owners may deduct tax paid during previous stages, but then the burden of the tax is on the final consumer.
To reduce VAT costs, items would need to either fall under the exempt categories, or deduct tax that has been paid during previous stages. You will not have to register for VAT unless you make taxable item sales that exceed R1 million (from 1 March 2009) over 12 consecutive months, which means that smaller business who do not turn over a huge profit each year may be except from VAT.
There are also additional aspects such as whether your business premises are also your home, or whether you tax your commercial property, partial exemption, overseas customers and export VAT. With an accounting services company that has years of experience in dealing with all aspects relating to VAT and other taxes, you will be able to find the best ways to save money and streamline the entire VAT process.
To learn more about the many business tax services that PATC offers business owners, contact us today to find out how we can help your specific VAT needs.
Article Source: http://www.articlesbase.com/taxes-articles/how-to-trim-a-vat-value-added-tax-bill-4674464.html
About the Author
Pinetown Accountants provide personal and professional services in Durban South Africa. Our services are tax consulting, professional accountant and financial accountants.