If you are a trader based in the UK or any other EU country which has adopted vat as a medium of taxation you then 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 provided by your own vat department.
In the United Kingdom vat rules specify that you can apply for vat registration in case 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 before the sales touch this figure. However, you can at present 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 do business internationally then you could download and print all vat registration forms but will probably be needed to fill the form manually before sending it 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 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 perhaps a customs and excise customs vat agent in case you plan to conduct your business on an international level. This will allow 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’ll receive a vat questionnaire within 15 days that will require additional details to be submitted including your organization address, telephone and fax numbers, bank account numbers, and several other details connected to your small business including a few purchase and sales invoices.
Once your application is approved 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 also the same must also be shown in your vat returns which will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 types of vat rates applicable for all goods and services. The regular vat rate is 17.5% that is set to increase 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 which will remain the same. There are also certain goods and services that are vat exempt. However, the vat rates are different in each eu country even though basic concept of charging vat tax continues to be same in all vat enabled countries.
If you wish 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 if your organization is located in the UK or ask your vat agent to do this for you before using online vat registration to have registered as a vat dealer without any problem.