If you are a trader located in the UK or any 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 effort and time 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 if your taxable sales rise above the vat threshold limit of £70,000 during the past 1 year or if you feel that they are going to do this over the following 1 month, even though you could register even before the 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 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 probably be needed to fill up 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’ll have to first study all applicable vat rules before you decide to register your business 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 case you plan to conduct your small 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 the hmrc department then you will receive 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 several other details connected to your small business together with a few purchase and sales invoices.
As soon as your application is approved then you will receive your vat number and you’ll 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 also the same must also be displayed in your vat returns which will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 different types of vat rates applicable for all goods and services. The standard vat rate is 17.5% that’s 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 services and goods that will stay the same. There are also certain products or services which are vat exempt. However, the vat rates will vary 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 business for vat then going on the internet will help save time plus allow you to securely complete the required process required for vat registration. You ought to simply log on to the hmrc vat department if your organization is based in the UK or ask your vat agent to do so for you before using online vat registration to have registered as a vat dealer without any problem.