If you’re a trader located in the UK or any 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 effort and time by utilizing all online vat services offered 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 in the past 12 months or if you feel that they will do this over the following 30 days, although you can still register before the 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 form is generally utilised by small establishments. In case your business is a partnership firm, a group of companies, or plans to do business internationally then you can download and print all vat registration forms but will probably be required 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 which has adopted vat then you will have to first study all applicable vat rules before you 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 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.
When you send your vat online registration form to your hmrc department then you will get 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 several other details associated with your small business together with a few purchase and sales invoices.
Once your application is approved you will receive your vat number and you’ll now need to change your invoicing approach to issue vat invoices for all of your sales. This vat invoice will need to display your vat no, vat rate, vat amount and also the same must also be shown on your vat returns which will need 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 for all services and goods. The standard vat rates are 17.5% that is 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 that will stay the same. There are also certain goods and services which 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 all vat enabled countries.
If you wish to register your organization for vat then going on the internet may help save your time and also enable you to securely complete the required process needed 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 this for you before using online vat registration to get registered as being a vat dealer without any problem.