If you’re a trader based in the UK or 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 so you too should reduce time and effort by using all online vat services offered by your vat department.
In the UK vat rules specify that you could make an application for vat registration in case your taxable sales rise over the vat threshold limit of £70,000 in the past 1 year or if you feel they will do so over the following 30 days, even though you could register even before the 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 method is generally used by small businesses. If your organization is a partnership firm, a group of companies, or plans to do business internationally then you could download and print all vat registration forms but will be needed to fill 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 that has adopted vat then you’ll have to first study all applicable vat rules before you decide to register your business online. In case 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 the event you intend to conduct your business on an international level. This may 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 the hmrc department then you’ll get a vat questionnaire within 15 days that will require additional details to be submitted such as your organization address, telephone and fax numbers, banking account numbers, and several other details connected to your small business including a few purchase and sales invoices.
Once your application is eligible you will receive your vat number and you will now need 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 displayed on your vat returns which 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 to all goods and services. 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 goods and services that are vat exempt. However, the vat rates will vary in each eu country although the 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 will help save time and also enable 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 on your behalf before using online vat registration to have registered as being a vat dealer without any problem.