I agree with all the above.....
The admin is lousy but it keeps the integrity of your accounts intact.
I think though that Sieg hit one of my issues which would make me think twice about registering for vat.
You can be more competitive with your pricing.
The rates in our business are fairly market driven, price sensitive and similar across regional and local areas - similar to most business's I would imagine. So my rates, the same as my competitors, have to include vat. Although this is a selling point to corporations who are registered, the majority of buyers do not understand vat and are just looking for the best price, whether it is vat inclusive or not.
My competitors are able to offer discounts and specials and undercut my rates, in order to boost their business. I am already short in comparison to them on my bottom line..to give more away in specials just to rope in additional business is not necessarily the way to go.
Also there is always the potential of a tax audit and more aggravation.
Which is why one should be careful, when de-registering a cc or company from vat. I was told by a lady in the vat office that this is one of their triggers to come looking. Rather keep the existing business 'alive' and slowly get the numbers to zero - after a years worth of nil returns they may de-register you themselves and just hope you go away.
Did you like this article? Share it with your favourite social network.