If you are a trader based in the UK or any other EU country that 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 effort and time by using all online vat services offered by your vat department.
In the United Kingdom vat rules specify that you can apply for vat registration in case your taxable sales rise over the vat threshold limit of Â£70,000 during the past 12 months or if you feel that they are going to do this within the next 30 days, although you could register even 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 method is generally used by small establishments. If your organization is a partnership firm, a group of companies, or plans to do business internationally then you can download and print all vat registration forms but will be required to fill the form manually before sending it 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 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 the event you plan 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.
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 several other details associated with 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 need to alter 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 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 United Kingdom you will discover 3 types of vat rates applicable for all goods and services. The regular vat rates are 17.5% that is set to increase to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% and a zero vat rate on specific services and goods which will remain the same. There’s also certain goods and services which are vat exempt. However, the vat rates will vary in each eu country even though basic reasoning behind charging vat tax continues to be same in most vat enabled countries.
If you want to register your business for vat then going online may help save time plus allow you to securely complete the necessary process required for vat registration. You should simply log on to the hmrc vat department in case your business is based in the UK or ask your vat agent to do this on your behalf before using online vat registration to get registered as a vat dealer without having problem.