If you are a trader based in the UK or any 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 so you too should save on time and effort by using all online vat services offered by your own vat department.
In the United Kingdom vat rules specify that you can apply for vat registration in case your taxable sales rise above the vat threshold limit of £70,000 in the past 12 months or if you feel they are going to do this over the following 1 month, even though you can still register before the 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 normally utilised by small businesses. In case your business 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 required to fill 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 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 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 your hmrc department then you will receive a vat questionnaire within 15 days that will require additional details to be submitted including your business address, telephone and fax numbers, banking account numbers, and several other details connected to your small business together with a few purchase and sales invoices.
Once your application is eligible you will receive your vat number and you will now have to alter 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 will also need to be shown 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 to all goods and services. The standard vat rates are 17.5% that’s 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 that will stay the same. There’s also certain products or services which are vat exempt. However, the vat rates will vary in each eu country even though basic concept of charging vat tax continues to be same in most vat enabled countries.
If you want 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 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 on your behalf before using online vat registration to have registered as being a vat dealer without having problem.