If you’re a trader based in the UK or any other EU country which 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 United Kingdom vat rules specify that you can make an application for vat registration if your taxable sales rise over the vat threshold limit of £70,000 in the past 12 months or if you feel they are going to do this over the following 1 month, although you can still register even before the 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 used by small establishments. In case your business 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 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’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 it is better if you appoint a vat agent or even a customs and excise customs vat agent in case you plan to conduct your small business on an international level. This may 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 your hmrc department then you’ll get a vat questionnaire within 15 days that will need additional details to be submitted including your organization address, telephone and fax numbers, banking account numbers, and several other details associated with your business together with a few purchase and sales invoices.
Once your application is approved then you will receive your vat number and you’ll 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 will also need to be displayed on your vat returns that will need 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 for all goods and services. The regular vat rate is 17.5% that’s set to increase to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% and a zero vat rate on specific services and goods 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 although the basic reasoning behind charging vat tax remains the same in all vat enabled countries.
If you want to register your organization for vat then going on the internet may help save time plus allow you to securely complete the necessary process needed for vat registration. You ought to 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.