If you’re a trader located in the UK or other EU country which has adopted vat to be 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 time and effort by using all online vat services provided by your own vat department.
In the UK vat rules specify that you could apply for vat registration if your taxable sales rise above the vat threshold limit of £70,000 during the past 1 year or if you feel that they will do this over the following 1 month, although you can still register 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 method is generally utilised 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 be required to fill up the form manually before sending it 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 organization online. In case 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 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 your hmrc department then you’ll get a vat questionnaire within 15 days that will require additional details to be submitted such as 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.
Once your application is eligible you will receive your vat number and you will now need to change 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 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 there are 3 different types of vat rates applicable to all goods and services. The standard 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 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 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 time and also allow 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 being a vat dealer without any problem.