If you’re a trader located in the UK or other EU country which 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 save on time and effort by utilizing all online vat services offered by your vat department.
In the United Kingdom vat rules specify that you could make an application for vat registration if your taxable sales rise above the vat threshold limit of £70,000 during the past 12 months or if you feel that they will do so over the following 1 month, even though you can still register before the sales touch this figure. However, you are able to at present only complete basic vat online registration by filling and submitting vat form 1 online. This method is normally used by small establishments. In case your organization is a partnership firm, a group of companies, or intends to do business internationally then you can download and print all vat registration forms but will be needed to fill up 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 may enable you to remain safe while following all vat rules in several countries with falling foul of any department.
Once you send your vat online registration form to your hmrc department then you’ll get a vat questionnaire within 15 days that will need additional details to be submitted including your business address, telephone and fax numbers, banking account numbers, and several other details associated with your 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 approach to issue vat invoices for all your sales. This vat invoice will have to display your vat no, vat rate, vat amount and also the same must also be shown in your vat returns which will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 types of vat rates applicable to all goods and services. The standard vat rate is 17.5% that is 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 that 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 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 on the internet will help save your time and also enable you to securely complete the required process needed for vat registration. You should 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 on your behalf before using online vat registration to have registered as a vat dealer without any problem.