If you’re a trader based in the UK or other EU country that has adopted vat to be a medium of taxation you then should use online VAT registration for faster and secure vat registering. Most countries have computerised their vat operations and you too should reduce effort and time by using all online vat services provided by your vat department.
In the UK vat rules specify that you can make an application for vat registration if your taxable sales rise above the vat threshold limit of Â£70,000 during the past 12 months or if you feel they will do this over the following 1 month, even though you can still register even before your 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 method is generally used 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 probably be needed to fill up the form manually before sending it 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 which has adopted vat then you’ll need to first study all applicable vat rules before you decide to register your organization 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 small business on an international level. This will allow you to remain safe while following all vat rules in different 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 require additional details to be submitted including your business address, telephone and fax numbers, bank account numbers, and a lot of other details associated with 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 alter your invoicing approach to issue vat invoices for all of your sales. This vat invoice will need to display your vat no, vat rate, vat amount and also 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 United Kingdom there are 3 different types of vat rates applicable for all services and goods. The regular 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% and a zero vat rate on specific services and goods which will remain 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 reasoning behind charging vat tax remains the same in most vat enabled countries.
If you want to register your business for vat then going online will help save your time and also allow you to securely complete the necessary process required for vat registration. You should simply log on to the hmrc vat department if your business is located in the UK or ask your vat agent to do so for you before using online vat registration to have registered as a vat dealer without having problem.