If you are a trader located in the UK or other EU country that has adopted vat to be 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 save on time and effort by using all online vat services provided by your vat department.
In the UK vat rules specify that you can apply for vat registration in case your taxable sales rise over the vat threshold limit of Â£70,000 during the past 12 months or if you feel that they are going to do this over the following 30 days, although you can still register even before your 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 normally utilised by small businesses. In case your business is a partnership firm, a group of companies, or plans to conduct business internationally then you can download and print all vat registration forms but will be required to fill 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 that has adopted vat then you will have 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 perhaps a customs and excise customs vat agent in case you intend to conduct your business on an international level. This will enable 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’ll receive a vat questionnaire within 15 days that will need additional details to be submitted such as your business address, telephone and fax numbers, bank account numbers, and several other details connected to your small 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 have to alter your invoicing method to issue vat invoices for all your sales. This vat invoice will need 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 different types of vat rates applicable for all goods and services. The regular 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 remain the same. There’s also certain goods and services which 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 wish to register your business for vat then going on the internet 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 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.