If you’re a trader based 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 vat department.
In the UK vat rules specify that you could apply for vat registration if your taxable sales rise over the vat threshold limit of £70,000 during the past 1 year or if you feel they will do so over the following 30 days, even though you could register even before your sales touch this figure. However, you can at present only complete basic vat online registration by filling and submitting vat form 1 online. This form is generally used by small businesses. In case your business 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 up 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 business online. In case you have trouble in deciphering uk vat or eu vat rules then it is better if you appoint a vat agent or perhaps a customs and excise customs vat agent in case you intend to conduct your small business on an international level. This will enable 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 require additional details to be submitted such as your business address, telephone and fax numbers, banking account numbers, and several other details associated with your 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 method 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 shown on your vat returns which will need 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 goods and services. The standard vat rates are 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 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 reasoning behind charging vat tax remains the same in most vat enabled countries.
If you wish to register your business for vat then going on the internet will help save time and also allow you to securely complete the necessary process required for vat registration. You should simply log on to the hmrc vat department if your organization is located in the UK or ask your vat agent to do this for you before using online vat registration to get registered as a vat dealer without any problem.