If you’re a trader based in the UK or other EU country that 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 and you too should save on time and effort 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 over the vat threshold limit of £70,000 during the past 1 year or if you feel that they are going to do so over the following 30 days, although 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 generally used by small businesses. In case your business is a partnership firm, a group of companies, or intends to conduct business internationally then you could download and print all vat registration forms but will be required to fill up 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 that has adopted vat then you will need 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 case 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.
When you send your vat online registration form to your hmrc department then you will receive a vat questionnaire within 15 days that will require additional details to be submitted such as your business address, telephone and fax numbers, banking account numbers, and several other details connected to your small business together with a few purchase and sales invoices.
As soon as 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 the same will also need to be displayed in your vat returns which will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 different types of vat rates applicable for 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% and a zero vat rate on specific goods and services that will stay 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 remains the same in most vat enabled countries.
If you wish to register your organization for vat then going on the internet may help save time plus enable you to securely complete the necessary process needed for vat registration. You ought to simply log on to the hmrc vat department in case your business is based in the UK or ask your vat agent to do so for you before using online vat registration to have registered as a vat dealer without having problem.