If you’re a trader based in the UK or other EU country that has adopted vat as 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 could apply for vat registration if your taxable sales rise over the vat threshold limit of £70,000 during the past 12 months or if you feel they are going to do this within the next 1 month, even though you could register even before the sales touch this figure. However, you can at present only complete basic vat online registration by filling and submitting vat form 1 online. This method is normally used by small businesses. If your business 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 be required to fill 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 which has adopted vat then you’ll have to first study all applicable vat rules before you register your business online. Should 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 case you intend to conduct your small business on an international level. This will allow 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 will get a vat questionnaire within 15 days that will need additional details to be submitted such as your organization address, telephone and fax numbers, bank account numbers, and several other details connected to your small business together with a few purchase and sales invoices.
Once your application is approved then you will receive your vat number and you’ll now need to alter your invoicing method to issue vat invoices for all of your sales. This vat invoice will need to display your vat no, vat rate, vat amount and also the same must also be shown in your vat returns that will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom there are 3 types of vat rates applicable for all services and goods. The regular vat rates are 17.5% that is 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 services and goods that will remain the same. There are also certain goods and services that are vat exempt. However, the vat rates will vary in each eu country although the 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 online will help save time and also allow you to securely complete the required process needed for vat registration. You ought to simply log on to the hmrc vat department in case your organization is located in the UK or ask your vat agent to do so for you before using online vat registration to get registered as a vat dealer without having problem.