VAT for Export

[Asked by Guest]

Hi All,

When starting export business is it mandatory to do VAT registration during the starting of the company or can I do after the VAT threshold is reached.
If I am during VAT registration, do I need to have commercial outlet or can I register using separate space in my home?

[YAGAY and SUN]

It is always better to obtain VAT/CST/Entry Tax Registration before starting a business and through commercial outlet you shall be benefited in terms of fulfilling the KYC norms etc.

[Ganeshan Kalyani]

Sir, you need to get VAT registration if you know that your export is going to cross the threshold limit. Thanks.

Thanks YAGAY AND SUN, Ganesh sir for your reply..

I would like to register VAT when I am nearing threshold but will customs ask for TIN number during clearance for export?

[SURESH ASTEKAR]

Dear M Kings

If you want to export taxable goods from Karnataka, Registration under Karnataka VAT Act is mandatory after you make the first export, as per Section 22 (7) of the KVAT Act, 2003, which is as under:

"(7) Every dealer who exports taxable goods is liable to register after the first export and shall report such liability at the end of the month in which such export takes place."

Thanks Suresh sir.. Your point is very useful..

AI Summary

VAT registration for exporters: mandatory after first export and advisable beforehand to facilitate customs clearance and KYC.
Dealers exporting taxable goods should obtain VAT registration proactively for KYC and commercial facilitation; registration is recommended if turnover will cross the threshold. Under Karnataka VAT rules a dealer becomes liable to register after the first export and must report that liability at month-end, and customs may request the dealer identification number during clearance.