If you are a trader based in the UK or any 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 so 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 make an application for vat registration in case your taxable sales rise over the vat threshold limit of £70,000 in the past 12 months 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 the moment only complete basic vat online registration by filling and submitting vat form 1 online. This method is generally used by small businesses. If your business is a partnership firm, a group of companies, or plans to do business internationally then you can 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 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. 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 case you intend to conduct your business on an international level. This will enable 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 the hmrc department then you will get a vat questionnaire within 15 days that will need additional details to be submitted such as your business address, telephone and fax numbers, banking account numbers, and a lot of other details associated with your business together with a few purchase and sales invoices.
Once your application is approved you will receive your vat number and you will now need to alter your invoicing method to issue vat invoices for all of your sales. This vat invoice will have to display your vat no, vat rate, vat amount and also the same will also need to be shown in your vat returns which 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 is set to raise to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% plus a zero vat rate on specific goods and services that 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 although the basic concept of charging vat tax continues to be same in most vat enabled countries.
If you wish to register your organization for vat then going online will help save your time and also enable you to securely complete the required process required for vat registration. You should simply log on to the hmrc vat department if your business is based in the UK or ask your vat agent to do so for you before using online vat registration to get registered as being a vat dealer without having problem.