If you’re a trader based in the UK or 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 and you too should reduce effort and time by using all online vat services offered by your vat department.
In the UK vat rules specify that you can apply for vat registration if your taxable sales rise above the vat threshold limit of £70,000 during the past 1 year or if you feel that they are going to do this within the next 30 days, although you can still register before your sales touch this figure. However, you are able to 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 can download and print all vat registration forms but will probably be needed to fill up the form manually before sending it back to the HM Revenue and Customs or hmrc vat department.
If you plan to go in for online vat registration in another eu country that has adopted vat then you will need to first study all applicable vat rules before you register your business online. In case you have trouble in deciphering uk vat or eu vat rules then its better if you appoint a vat agent or even 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 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 then you will receive your vat number and you’ll now need to change your invoicing approach to issue vat invoices for all of your sales. This vat invoice will need to display your vat no, vat rate, vat amount and the same must also be shown on 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 regular vat rate is 17.5% that’s 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 services and goods that will stay the same. There are also certain goods and services that are vat exempt. However, the vat rates are different in each eu country although the basic concept of charging vat tax remains the same in all vat enabled countries.
If you want to register your organization for vat then going online may help save your time and also enable you to securely complete the required process required for vat registration. You ought to simply log on to the hmrc vat department in case your organization is based 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 having problem.