If you’re a trader located in the UK or other EU country which has adopted vat as a medium of taxation then you should use online VAT registration for faster and secure vat registering. Most countries have computerised their vat operations so you too should save on effort and time by utilizing all online vat services provided by your vat department.
In the UK vat rules specify that you could apply for vat registration in case your taxable sales rise above the vat threshold limit of £70,000 in the past 1 year or if you feel that they will do this within the next 30 days, even though you can still register even before your sales touch this figure. However, you are able to at present only complete basic vat online registration by filling up and submitting vat form 1 online. This form is normally used by small establishments. If your organization 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 probably be required 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 register your business online. Should 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 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 will get a vat questionnaire within 15 days that will require additional details to be submitted including your organization address, telephone and fax numbers, banking account numbers, and a lot of other details connected to your business together with a few purchase and sales invoices.
As soon as your application is approved then you will receive your vat number and you’ll now need to alter 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 will also need to be shown on your vat returns that will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK you will discover 3 types of vat rates applicable to all goods and services. The standard vat rate is 17.5% that’s set to increase to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% plus a zero vat rate on specific goods and services which 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 concept of charging vat tax continues to be same in most vat enabled countries.
If you wish to register your business for vat then going on the internet will 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 this for you before using online vat registration to have registered as a vat dealer without any problem.