If you are a trader located in the UK or other EU country that 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 United Kingdom vat rules specify that you can apply for vat registration in case your taxable sales rise above the vat threshold limit of £70,000 in the past 12 months or if you feel that they are going to do this over the following 1 month, even though you can still register before your sales touch this figure. However, you can at the moment only complete basic vat online registration by filling and submitting vat form 1 online. This method is normally utilised by small establishments. In case 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 plan 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 it is better if you appoint a vat agent or perhaps a customs and excise customs vat agent in the event you intend 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 your hmrc department then you will receive a vat questionnaire within 15 days that will need additional details to be submitted such as your organization address, telephone and fax numbers, banking account numbers, and a lot of other details associated with your business together with a few purchase and sales invoices.
Once your application is eligible then you will receive your vat number and you will now need 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 the same must also be shown in your vat returns which will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom there are 3 types of vat rates applicable to all services and goods. The regular vat rate is 17.5% that’s set to increase 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 will vary in each eu country even though basic concept of charging vat tax remains the same in most vat enabled countries.
If you want to register your business for vat then going online will help save your time plus allow you to securely complete the required process needed for vat registration. You ought to simply log on to the hmrc vat department if your business is based in the UK or ask your vat agent to do so on your behalf before using online vat registration to get registered as a vat dealer without any problem.