If you are a trader based in the UK or other EU country which has adopted vat to be a medium of taxation then you should use online VAT registration for faster and secure vat registering. Most countries have computerised their vat operations so you too should reduce effort and time by using all online vat services provided by your vat department.
In the UK vat rules specify that you can make an application for vat registration if your taxable sales rise above the vat threshold limit of £70,000 in the past 1 year or if you feel they will do this over the following 30 days, although you could register even before the sales touch this figure. However, you can at present only complete basic vat online registration by filling up and submitting vat form 1 online. This method is generally used by small establishments. In case your business 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 probably be needed to fill the form manually before sending it to the HM Revenue and Customs or hmrc vat department.
If you are planning to go in for online vat registration in another eu country which has adopted vat then you will need 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 the event you plan to conduct your small 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.
When you send your vat online registration form to the hmrc department then you will receive a vat questionnaire within 15 days that will require additional details to be submitted including your business address, telephone and fax numbers, banking account numbers, and a lot of other details connected to your business together with a few purchase and sales invoices.
As soon as your application is approved then you will receive your vat number and you’ll now need to alter 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 will also need to be displayed in your vat returns which will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom you will discover 3 types of vat rates applicable for all services and goods. The regular 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% and a zero vat rate on specific services and goods which will stay the same. There’s also certain goods and services that are vat exempt. However, the vat rates will vary in each eu country although the basic concept of charging vat tax continues to be same in all vat enabled countries.
If you want to register your organization for vat then going on the internet may help save time plus enable you to securely complete the necessary process needed for vat registration. You ought to simply log on to the hmrc vat department in case your organization is located in the UK or ask your vat agent to do so on your behalf before using online vat registration to get registered as a vat dealer without any problem.