If you’re a trader located in the UK or other EU country that has adopted vat as 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 offered by your vat department.
In the United Kingdom vat rules specify that you could make an application for vat registration if your taxable sales rise over the vat threshold limit of £70,000 in the past 1 year or if you feel that they will do so within the next 1 month, 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 up and submitting vat form 1 online. This method is normally utilised by small establishments. If your business is a partnership firm, a group of companies, or intends to conduct business internationally then you can download and print all vat registration forms but will be required to fill up the form manually before sending it back 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 will need to first study all applicable vat rules before you decide to register your business online. Should 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 enable you to remain safe while following all vat rules in several countries with falling foul of any department.
When you send your vat online registration form to the hmrc department then you’ll receive a vat questionnaire within 15 days that will require additional details to be submitted such as your organization address, telephone and fax numbers, banking account numbers, and a lot of other details associated with 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 have 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 the same must also be shown 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 services and goods. The regular vat rate is 17.5% that’s set to raise to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% plus a zero vat rate on specific goods and services that will stay the same. There are also certain goods and services which 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 business for vat then going on the internet may help save your time and also allow you to securely complete the required process needed for vat registration. You ought to simply log on to the hmrc vat department in case your organization is based in the UK or ask your vat agent to do so for you before using online vat registration to have registered as being a vat dealer without any problem.