If you are a trader located in the UK or other EU country which 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 so you too should save on time and effort by using all online vat services offered by your vat department.
In the United Kingdom vat rules specify that you can make an application 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 so within the next 30 days, although you could register before the sales touch this figure. However, you are able to at the moment only complete basic vat online registration by filling and submitting vat form 1 online. This method is generally utilised by small establishments. In case your business is a partnership firm, a group of companies, or plans to conduct 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 plan to go in for online vat registration in another eu country which 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 its 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 may enable 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’ll receive a vat questionnaire within 15 days that will require additional details to be submitted including your business address, telephone and fax numbers, banking account numbers, and a lot of other details connected to your small business together with a few purchase and sales invoices.
Once your application is approved you will receive your vat number and you’ll now have to alter your invoicing method to issue vat invoices for all of your sales. This vat invoice will have to display your vat no, vat rate, vat amount and also the same will also need to be displayed on your vat returns which will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom there are 3 different types of vat rates applicable for all goods and services. The standard vat rates are 17.5% that’s set to increase to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% and a zero vat rate on specific services and goods which will stay the same. There are also certain products or services which are vat exempt. However, the vat rates are different in each eu country even though basic concept of charging vat tax remains the same in all vat enabled countries.
If you wish to register your business for vat then going online may help save your time plus enable you to securely complete the necessary process needed 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 this for you before using online vat registration to have registered as a vat dealer without any problem.