If you are a trader based in the UK or other EU country which 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 and you too should reduce effort and time by utilizing all online vat services provided by your own 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 Â£70,000 in the past 12 months or if you feel they are going to do so within the next 30 days, even though 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 form is generally used by small establishments. 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 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’ll have to first study all applicable vat rules before you register your organization online. Should you have trouble in deciphering uk vat or eu vat rules then its better if you appoint a vat agent or even a customs and excise customs vat agent in the event you intend to conduct your small business on an international level. This will enable you to remain safe while following all vat rules in several countries with falling foul of any department.
Once you send your vat online registration form to your hmrc department then you will get a vat questionnaire within 15 days that will require additional details to be submitted such as your business address, telephone and fax numbers, bank 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 approved you will receive your vat number and you will now have to change your invoicing approach to issue vat invoices for all your sales. This vat invoice will have to display your vat no, vat rate, vat amount and also the same must also be displayed on 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 types of vat rates applicable to all services and goods. The standard vat rates are 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 goods and services which will stay the same. There’s also certain goods and services which are vat exempt. However, the vat rates will vary in each eu country even though basic reasoning behind charging vat tax continues to be same in most vat enabled countries.
If you wish to register your business for vat then going on the internet will help save time plus allow you to securely complete the required process needed for vat registration. You should simply log on to the hmrc vat department if your organization is based in the UK or ask your vat agent to do this for you before using online vat registration to get registered as being a vat dealer without any problem.