If you are a trader based in the UK or any other EU country that 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 and you too should reduce effort and time by utilizing all online vat services provided 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 Â£70,000 during the past 12 months or if you feel they are going to do so over the following 1 month, even though you could register even 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 form is generally used by small businesses. If your organization is a partnership firm, a group of companies, or intends to conduct business internationally then you can download and print all vat registration forms but will be needed 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 that has adopted vat then you will have to first study all applicable vat rules before you decide to register your organization 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 allow 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 the hmrc department then you’ll 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 associated with your business including a few purchase and sales invoices.
Once your application is eligible then you will receive your vat number and you’ll now have to alter your invoicing method to issue vat invoices for all 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 different types of vat rates applicable to all services and goods. The regular vat rates are 17.5% that’s set to raise to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% plus a zero vat rate on specific services and goods which will remain the same. There’s also certain products or services that 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 want to register your organization for vat then going online may help save time and also 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 get registered as a vat dealer without any problem.