If you’re a trader based in the UK or other EU country which has adopted vat as 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 reduce time and effort by using all online vat services offered by your vat department.
In the UK vat rules specify that you could make an application for vat registration if your taxable sales rise above the vat threshold limit of £70,000 during the past 12 months or if you feel that they will do this within the next 1 month, 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 up and submitting vat form 1 online. This method is generally utilised by small establishments. If your business 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 be needed to fill the form manually before sending it back 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 have 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 intend to conduct your business on an international level. This will allow 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 your hmrc department then you’ll receive a vat questionnaire within 15 days that will need additional details to be submitted such as your business address, telephone and fax numbers, bank account numbers, and several other details connected to your small business together with a few purchase and sales invoices.
As soon as your application is eligible then you will receive your vat number and you’ll now need to change your invoicing method to issue vat invoices for all your sales. This vat invoice will need to display your vat no, vat rate, vat amount and also the same must also be shown in your vat returns which will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK you will discover 3 different types of vat rates applicable for all goods and services. The standard 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% and a zero vat rate on specific services and goods which will remain the same. There are also certain products or services that are vat exempt. However, the vat rates will vary in each eu country even though basic reasoning behind 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 may help save your time plus allow you to securely complete the required process needed for vat registration. You should simply log on to the hmrc vat department if your business is based 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.