If you’re a trader based in the UK or other EU country that 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 save on effort and time by utilizing all online vat services provided by your own 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 £70,000 during the past 12 months or if you feel they will do this within the next 1 month, even though you could register even before the sales touch this figure. However, you are able to at present only complete basic vat online registration by filling and submitting vat form 1 online. This form is generally utilised by small businesses. In case your business is a partnership firm, a group of companies, or intends to do 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 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 need 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 it is better if you appoint a vat agent or even a customs and excise customs vat agent in case you intend to conduct your small business on an international level. This may 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 get a vat questionnaire within 15 days that will require additional details to be submitted such as your organization address, telephone and fax numbers, bank account numbers, and several other details associated with your business including a few purchase and sales invoices.
As soon as your application is eligible then you will receive your vat number and you’ll 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 the same will also need to be displayed in your vat returns that will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK you will discover 3 types of vat rates applicable to all services and goods. The regular vat rate is 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 which will remain the same. There’s also certain goods and services which are vat exempt. However, the vat rates are different in each eu country although the basic concept of charging vat tax continues to be same in all vat enabled countries.
If you wish to register your business for vat then going on the internet will help save your time and also allow you to securely complete the required 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 for you before using online vat registration to get registered as a vat dealer without having problem.