If you are a trader based in the UK or any 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 effort and time by using all online vat services provided by your own vat department.
In the UK vat rules specify that you can apply for vat registration if your taxable sales rise over the vat threshold limit of £70,000 in the past 1 year or if you feel that they are going to do so within the next 30 days, although you can still register even before your sales touch this figure. However, you can at present only complete basic vat online registration by filling up and submitting vat form 1 online. This method is generally utilised by small businesses. In case 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 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 which has adopted vat then you’ll need to first study all applicable vat rules before you register your business online. In case you have trouble in deciphering uk vat or eu vat rules then its better if you appoint a vat agent or even a customs and excise customs vat agent in case you intend to conduct your small business on an international level. This may 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 the hmrc department then you’ll get a vat questionnaire within 15 days that will require additional details to be submitted such as your business address, telephone and fax numbers, banking account numbers, and several other details associated with your business together with 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 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 regular 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 that will remain the same. There’s also certain goods and services that are vat exempt. However, the vat rates will vary in each eu country even though basic reasoning behind charging vat tax remains the same in most vat enabled countries.
If you want to register your business for vat then going on the internet will help save time plus allow you to securely complete the necessary process required 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 have registered as being a vat dealer without any problem.