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 offered by your own vat department.
In the UK vat rules specify that you could apply for vat registration in case your taxable sales rise over the vat threshold limit of Â£70,000 during the past 12 months or if you feel that they will do this over the following 1 month, even though you could register before your sales touch this figure. However, you are able to at the moment only complete basic vat online registration by filling up and submitting vat form 1 online. This form is normally utilised by small businesses. If your vat control organization is a partnership firm, a group of companies, or intends to do business internationally then you can download and print all vat registration forms but will probably be needed 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 which has adopted vat then you will need to first study all applicable vat rules before you register your organization 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 the event you plan to conduct your business on an international level. This will enable 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’ll receive a vat questionnaire within 15 days that will need additional details to be submitted including your organization address, telephone and fax numbers, banking account numbers, and several other details associated with your small business including a few purchase and sales invoices.
As soon as your application is eligible then you will receive your vat number and you’ll 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 displayed on your vat returns which will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 different types of vat rates applicable to all goods and services. The regular vat rate is 17.5% that’s set to increase to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% plus a zero vat rate on specific services and goods that will stay the same. There’s also certain goods and services which are vat exempt. However, the vat rates are different in each eu country even though basic concept of charging vat tax remains the same in all vat enabled countries.
If you want to register your organization for vat then going online will help save time plus allow you to securely complete the necessary process needed for vat registration. You should simply log on to the hmrc vat department if your business is based in the UK or ask your vat agent to do this on your behalf before using online vat registration to have registered as being a vat dealer without having problem.