VAT for Export

[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 andSUN]

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.

[Guest]

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."

[Guest]

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

AI Summary

VAT Registration Essential for Export Startups: Required After First Export in Karnataka Under KVAT Act, Section 22 (7) A forum user inquired about the necessity of VAT registration when starting an export business, questioning whether it is mandatory at inception or only after reaching the VAT threshold, and whether a commercial outlet is required for registration. Responses advised obtaining VAT/CST registration before starting the business for compliance benefits and confirmed that VAT registration is mandatory once exports exceed the threshold. Additionally, it was highlighted that in Karnataka, registration under the KVAT Act is required after the first export, as per Section 22 (7). The user appreciated the guidance provided by the respondents.