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 effort and time by utilizing all online vat services offered by your vat department.
In the UK vat rules specify that you can make an application for vat registration in case your taxable sales rise over the vat threshold limit of £70,000 during the past 12 months or if you feel they are going to do so over the following 30 days, although you can still register even before the sales touch this figure. However, you can at the moment only complete basic vat online registration by filling and submitting vat form 1 online. This form is normally utilised by small establishments. In case your business is a partnership firm, a group of companies, or intends to conduct business internationally then you could download and print all vat registration forms but will probably be required to fill the form manually before sending it 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’ll need to first study all applicable vat rules before you register your organization online. Should you have trouble in deciphering uk vat or eu vat rules then its better if you appoint a vat agent or perhaps a customs and excise customs vat agent in the event 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.
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 associated with your business including a few purchase and sales invoices.
Once your application is approved then you will receive your vat number and you will now have to change your invoicing approach to issue vat invoices for all of your sales. This vat invoice will have to display your vat no, vat rate, vat amount and the same must also be displayed on your vat returns that 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 for all services and goods. The regular vat rate is 17.5% that’s set to increase to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% plus a zero vat rate on specific goods and services that will stay the same. There are 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 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 required process required for vat registration. You should simply log on to the hmrc vat department if 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 being a vat dealer without having problem.