If you are a trader based in the UK or other EU country that 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 time and effort by utilizing all online vat services offered by your own vat department.
In the UK vat rules specify that you could apply for vat registration in case your taxable sales rise above the vat threshold limit of £70,000 during the past 1 year or if you feel that they are going to do so within the next 30 days, even though you can still register before the sales touch this figure. However, you are able to at present only complete basic vat online registration by filling and submitting vat form 1 online. This method is normally utilised by small businesses. 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 probably be required 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 have to first study all applicable vat rules before you register your business 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 perhaps a customs and excise customs vat agent in case you intend to conduct your small business on an international level. This will 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 your hmrc department then you will receive a vat questionnaire within 15 days that will need additional details to be submitted including your business address, telephone and fax numbers, bank account numbers, and a lot of other details connected to your business including a few purchase and sales invoices.
As soon as your application is eligible then you will receive your vat number and you’ll now need to alter your invoicing method to issue vat invoices for all of your sales. This vat invoice will have to display your vat no, vat rate, vat amount and also the same will also need to be shown in your vat returns that will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 types of vat rates applicable to all services and goods. The standard vat rate is 17.5% that’s set to raise to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% plus a zero vat rate on specific services and goods that will stay the same. There’s also certain goods and services which are vat exempt. However, the vat rates are different in each eu country although the basic concept of charging vat tax remains the same in all vat enabled countries.
If you wish to register your organization for vat then going on the internet may help save your time and also enable you to securely complete the necessary process required for vat registration. You ought to simply log on to the hmrc vat department if your business is based 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.