If you’re a trader located in the UK or 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 and you too should save on time and effort by using all online vat services provided by your own vat department.
In the UK vat rules specify that you could apply for vat registration in case your taxable sales rise above the vat threshold limit of Â£70,000 in the past 12 months or if you feel they are going to do so over the following 1 month, although you can still register even before your 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 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 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 will have to first study all applicable vat rules before you register your organization 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 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’ll receive a vat questionnaire within 15 days that will require additional details to be submitted including your organization address, telephone and fax numbers, banking account numbers, and a lot of other details connected to your small business including a few purchase and sales invoices.
Once your application is approved 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 that will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 types of vat rates applicable for all services and goods. The standard vat rate is 17.5% that is set to raise to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% and a zero vat rate on specific goods and services which will stay the same. There are also certain goods and services that are vat exempt. However, the vat rates are different in each eu country although the basic concept of 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 your time and also enable you to securely complete the required process required for vat registration. You should simply log on to the hmrc vat department in case your organization is located in the UK or ask your vat agent to do this for you before using online vat registration to have registered as a vat dealer without any problem.