If you are a trader located in the UK or any 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 so you too should save on time and effort by using all online vat services provided by your own vat department.
In the UK vat rules specify that you could apply for vat registration in case your taxable sales rise over the vat threshold limit of £70,000 during the past 12 months or if you feel they are going to do so over the following 1 month, 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 and submitting vat form 1 online. This form is normally utilised by small establishments. 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 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’ll need to first study all applicable vat rules before you decide to register your organization online. In case you have trouble in deciphering uk vat or eu vat rules then its 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 may allow you to remain safe while following all vat rules in different 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 including your business address, telephone and fax numbers, bank account numbers, and a lot of other details connected to your small business together with a few purchase and sales invoices.
Once your application is approved you will receive your vat number and you’ll now have to change your invoicing method 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 shown in 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 regular vat rate is 17.5% that’s set to raise 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’s also certain products or services that are vat exempt. However, the vat rates will vary in each eu country even though basic concept of charging vat tax remains the same in all vat enabled countries.
If you want to register your business for vat then going online may help save time plus enable you to securely complete the required process needed for vat registration. You ought to simply log on to the hmrc vat department if your business is located in the UK or ask your vat agent to do so on your behalf before using online vat registration to get registered as a vat dealer without any problem.