If you are a trader based in the UK or any 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 save on effort and time by using all online vat services offered by your own vat department.
In the UK vat rules specify that you could make an application for vat registration if your taxable sales rise above the vat threshold limit of £70,000 during the past 12 months or if you feel they are going to do this within the next 30 days, although you can still register even before your 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 form is generally 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 back 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 that has adopted vat then you’ll have to first study all applicable vat rules before you decide to 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 even a customs and excise customs vat agent in the event you intend to conduct your business on an international level. This may allow 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 your 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, bank account numbers, and several other details associated with your 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 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 must also be shown on your vat returns which will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom there are 3 different types of vat rates applicable to all services and goods. 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% and a zero vat rate on specific goods and services which will remain the same. There are also certain goods and services that are vat exempt. However, the vat rates will vary in each eu country although the basic reasoning behind charging vat tax remains the same in most vat enabled countries.
If you want to register your business for vat then going online will help save time and also allow you to securely complete the necessary process needed for vat registration. You should simply log on to the hmrc vat department in case your business is located in the UK or ask your vat agent to do this on your behalf before using online vat registration to get registered as being a vat dealer without having problem.