If you are a trader based in the UK or other EU country which has adopted vat to be 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 reduce time and effort by utilizing all online vat services offered by your vat department.
In the UK vat rules specify that you can 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 that they are going to do so within the next 1 month, even though you could register before your sales touch this figure. However, you can at the moment only complete basic vat online registration by filling up and submitting vat form 1 online. This form is normally used by small businesses. In case 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 required to fill up the form manually before sending it back 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 will 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 the event 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 your hmrc department then you’ll receive a vat questionnaire within 15 days that will need additional details to be submitted including your business address, telephone and fax numbers, banking account numbers, and a lot of 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 change your invoicing method to issue vat invoices for all of your sales. This vat invoice will have to display your vat no, vat rate, vat amount and the same will also need to be displayed in your vat returns that will have 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 services and goods. The standard 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% plus a zero vat rate on specific services and goods that 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 wish to register your business for vat then going on the internet will help save your time plus enable you to securely complete the required process required for vat registration. You should simply log on to the hmrc vat department if your business is based in the UK or ask your vat agent to do this on your behalf before using online vat registration to have registered as a vat dealer without any problem.