If you’re a trader located in the UK or any 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 effort and time by using all online vat services offered by your vat department.
In the United Kingdom vat rules specify that you can apply for vat registration if your taxable sales rise above the vat threshold limit of £70,000 in the past 1 year or if you feel they are going to do so over the following 30 days, although 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 and submitting vat form 1 online. This method is generally utilised by small establishments. In case your business is a partnership firm, a group of companies, or plans to conduct business internationally then you can download and print all vat registration forms but will be required 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 that has adopted vat then you’ll have to first study all applicable vat rules before you decide to register your organization 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 even a customs and excise customs vat agent in the event you intend to conduct your small business on an international level. This may 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 the hmrc department then you will get a vat questionnaire within 15 days that will need additional details to be submitted including your business address, telephone and fax numbers, bank account numbers, and a lot of other details associated with your small business including a few purchase and sales invoices.
As soon as your application is approved you will receive your vat number and you will now have to alter your invoicing approach 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 for all goods and services. 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% and a zero vat rate on specific services and goods that 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 even though basic concept of charging vat tax continues to be same in most vat enabled countries.
If you wish to register your business for vat then going on the internet will help save your time and also enable you to securely complete the necessary process needed 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 have registered as being a vat dealer without having problem.