If you are a trader based in the UK or any other EU country which 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 reduce time and effort by using all online vat services provided by your vat department.
In the United Kingdom vat rules specify that you could make an application for vat registration in case your taxable sales rise above the vat threshold limit of Â£70,000 during the past 12 months or if you feel that they will do so over the following 1 month, even though you could register even before your sales touch this figure. However, you can at the moment only complete basic vat online registration by filling up and submitting vat form 1 online. This form is generally vatverification.com used by small businesses. If your organization is a partnership firm, a group of companies, or intends to do business internationally then you could download and print all vat registration forms but will probably be required to fill up 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’ll need to first study all applicable vat rules before you decide to 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 even a customs and excise customs vat agent in case you plan to conduct your business on an international level. This may 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 the hmrc department then you’ll get a vat questionnaire within 15 days that will require additional details to be submitted such as your organization 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.
Once your application is eligible then you will receive your vat number and you’ll now have to alter your invoicing approach to issue vat invoices for all of your sales. This vat invoice will have to display your vat no, vat rate, vat amount and the same will also need to be displayed on your vat returns which will have 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 rate is 17.5% that is set to increase 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 remain the same. There are also certain products or services which are vat exempt. However, the vat rates are different in each eu country even though basic reasoning behind 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 time and also allow you to securely complete the required process required for vat registration. You should simply log on to the hmrc vat department if your organization is based in the UK or ask your vat agent to do so for you before using online vat registration to get registered as a vat dealer without having problem.