If you’re a trader based 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 utilizing all online vat services provided by your vat department.
In the UK vat rules specify that you can apply for vat registration in case your taxable sales rise over the vat threshold limit of Â£70,000 in the past 12 months or if you feel they are going to do this over the following 30 days, although you can still register before your sales touch this figure. However, you can at the moment only complete basic vat online registration by filling up and submitting vat form 1 online. This form is normally vat verification used by small businesses. In case your organization is a partnership firm, a group of companies, or plans to conduct 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 which has adopted vat then you will need to first study all applicable vat rules before you decide to register your business online. In case 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 the event you plan 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’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, 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 eligible you will receive your vat number and you’ll now have to change your invoicing approach 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 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 UK there are 3 types of vat rates applicable to all services and goods. The standard vat rates are 17.5% that is 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 that will stay the same. There’s 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 wish to register your organization for vat then going online will help save time plus enable you to securely complete the necessary process required for vat registration. You ought to simply log on to the hmrc vat department in case your organization is based in the UK or ask your vat agent to do this on your behalf before using online vat registration to have registered as a vat dealer without any problem.