If you’re a trader based in the UK or other EU country which has adopted vat to be 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 using all online vat services offered by your vat department.
In the United Kingdom vat rules specify that you could make an application 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 will do so within the next 30 days, although you could register even before the sales touch this figure. However, you can at the moment only complete basic vat online registration by filling and submitting vat form 1 online. This form is generally used by small establishments. If your business is a partnership firm, a group of companies, or intends to conduct business internationally then you can download and print all vat registration forms but will be needed to fill up 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’ll need to first study all applicable vat rules before you decide to register your organization online. Should you have trouble in deciphering uk vat or eu vat rules then it is better if you appoint a vat agent or even a customs and excise customs vat agent in the event you intend to conduct your business on an international level. This may 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 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 a lot of other details connected to your small business together with 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 approach to issue vat invoices for all your sales. This vat invoice will have to display your vat no, vat rate, vat amount and also the same will also need to be displayed on your vat returns that will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom you will discover 3 different 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 is a reduced vat rate of 5% plus a zero vat rate on specific goods and services that will stay the same. There’s also certain products or services that 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 business for vat then going online may help save your time plus allow you to securely complete the necessary process required for vat registration. You should simply log on to the hmrc vat department in case 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.