If you are a trader based in the UK or other EU country that has adopted vat as a medium of taxation you then should use online VAT registration for faster and secure vat registering. Most countries have computerised their vat operations and you too should reduce time and effort by utilizing all online vat services provided by your own vat department.
In the United Kingdom vat rules specify that you could apply for vat registration if your taxable sales rise over the vat threshold limit of £70,000 during the past 12 months or if you feel that they are going to do this within the next 30 days, even though you could register even before the sales touch this figure. However, you are able to at the moment only complete basic vat online registration by filling and submitting vat form 1 online. This method is generally used by small establishments. If your organization is a partnership firm, a group of companies, or intends to conduct business internationally then you could download and print all vat registration forms but will be required to fill the form manually before sending it to the HM Revenue and Customs or hmrc vat department.
If you plan to go in for online vat registration in another eu country which has adopted vat then you’ll have to first study all applicable vat rules before you register your organization online. In case you have trouble in deciphering uk vat or eu vat rules then it is better if you appoint a vat agent or even a customs and excise customs vat agent in case you plan to conduct your business on an international level. This may allow you to remain safe while following all vat rules in different countries with falling foul of any department.
Once you send your vat online registration form to the hmrc department then you will get a vat questionnaire within 15 days that will require additional details to be submitted including your organization address, telephone and fax numbers, banking account numbers, and several other details associated with your small business including a few purchase and sales invoices.
Once your application is approved you will receive your vat number and you will now need to change your invoicing approach to issue vat invoices for all of your sales. This vat invoice will have to display your vat no, vat rate, vat amount and the same must also be displayed in your vat returns that will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom you will discover 3 different types of vat rates applicable to all goods and services. The standard vat rates are 17.5% that is set to increase to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% plus a zero vat rate on specific services and goods which will stay the same. There’s also certain products or services that are vat exempt. However, the vat rates are different in each eu country even though basic reasoning behind charging vat tax remains the same in most vat enabled countries.
If you wish to register your organization for vat then going online will help save your time plus allow you to securely complete the necessary process required for vat registration. You should simply log on to the hmrc vat department if your business is located in the UK or ask your vat agent to do this for you before using online vat registration to get registered as a vat dealer without any problem.