What are the advantages of VAT?

The advantages of voluntary VAT registration:

• Some companies will need a VAT number in order to complete transactions, especiallyduring cross boarder transactions
• It gives your company higher credibility
• It gives your company potential cash flow advances depending on your circumstances
• If you sell zero-rated items and buy standard-rated items you receive a VAT refund from HMRC
• If you have not yet sold anything or don't sell anything during a VAT accounting period, you may still be able to claim VAT back on your purchases