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 reduce time and effort by using all online vat services provided 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 £70,000 in the past 12 months or if you feel they are going to do so within the next 1 month, although you can still register even 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 form is generally utilised by small establishments. In case 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 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 will need to first study all applicable vat rules before you decide to 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 may 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 your hmrc department then you’ll get a vat questionnaire within 15 days that will require additional details to be submitted including your organization address, telephone and fax numbers, bank account numbers, and a lot of other details connected to your business including a few purchase and sales invoices.
As soon as your application is approved you will receive your vat number and you will now have to alter 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 must also be shown in 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 for all services and goods. The regular vat rate is 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 goods and services that will remain the same. There’s also certain products or services which are vat exempt. However, the vat rates are different in each eu country even though basic reasoning behind charging vat tax continues to be same in all vat enabled countries.
If you wish to register your organization for vat then going online will help save time plus enable you to securely complete the necessary process required for vat registration. You should simply log on to the hmrc vat department if your business is located 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 any problem.