If you’re a trader located in the UK or 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 and you too should reduce effort and time by using all online vat services provided by your own vat department.
In the United Kingdom vat rules specify that you could 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 they are going to do so over the following 30 days, even though you can still register before the sales touch this figure. However, you are able to at present only complete basic vat online registration by filling up and submitting vat form 1 online. This form is normally utilised by small establishments. If your organization is a partnership firm, a group of companies, or plans to do business internationally then you could download and print all vat registration forms but will probably be required to fill 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 will need to first study all applicable vat rules before you register your business online. Should you have trouble in deciphering uk vat or eu vat rules then its 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 different 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, bank account numbers, and several other details associated with your business including a few purchase and sales invoices.
As soon as your application is approved then you will receive your vat number and you will now need to change your invoicing method 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 that 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 for all services and goods. The standard vat rate is 17.5% that is set to increase to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% and a zero vat rate on specific goods and services which will remain the same. There’s also certain goods and services that are vat exempt. However, the vat rates are different in each eu country even though basic concept of 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 ought to simply log on to the hmrc vat department if your business is located 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.