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 so you too should save on effort and time by utilizing all online vat services provided by your vat department.
In the UK vat rules specify that you could apply for vat registration in case your taxable sales rise over the vat threshold limit of £70,000 in the past 1 year or if you feel they will do so within the next 30 days, although you can still register even before your 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 method is normally used by small businesses. If your business is a partnership firm, a group of companies, or plans to do business internationally then you could download and print all vat registration forms but will be needed to fill up 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 which has adopted vat then you’ll need 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 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 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.
Once 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 such as your organization address, telephone and fax numbers, banking account numbers, and a lot of other details connected to your business together with a few purchase and sales invoices.
As soon as your application is eligible you will receive your vat number and you will now need to change your invoicing method to issue vat invoices for all of your sales. This vat invoice will need to display your vat no, vat rate, vat amount and the same will also need to be shown 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 for 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 which will remain the same. There are also certain goods and services which are vat exempt. However, the vat rates are different 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 organization for vat then going online may help save your time and also 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 business is based in the UK or ask your vat agent to do this for you before using online vat registration to get registered as being a vat dealer without having problem.