If you are a trader located in the UK or other EU country that has adopted vat as a medium of taxation you then 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 own vat department.
In the UK vat rules specify that you can make an application for vat registration in case your taxable sales rise above the vat threshold limit of Â£70,000 during the past 1 year or if you feel they will do so over the following 1 month, even though you can still register before the sales touch this figure. However, you can at present only complete basic vat online registration by filling and submitting vat form 1 online. This method is generally utilised by small businesses. If your organization is a partnership firm, a group of companies, or plans to conduct business internationally then you could download and print all vat registration forms but will be required to fill the form manually before sending it 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 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 the hmrc department then you’ll receive a vat questionnaire within 15 days that will need additional details to be submitted such as your business address, telephone and fax numbers, bank account numbers, and a lot of other details connected to your small business including a few purchase and sales invoices.
As soon as your application is approved you will receive your vat number and you will now need 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 the same will also need to be shown on your vat returns which will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK you will discover 3 types of vat rates applicable to all services and goods. The regular vat rates are 17.5% that is set to raise to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% plus a zero vat rate on specific goods and services that will stay the same. There are also certain goods and services which are vat exempt. However, the vat rates are different in each eu country although the basic reasoning behind charging vat tax continues to be same in most vat enabled countries.
If you want to register your business for vat then going on the internet may help save your time and also allow you to securely complete the required process needed for vat registration. You should 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 a vat dealer without having problem.