If you’re 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 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 apply for vat registration in case your taxable sales rise over the vat threshold limit of £70,000 during the past 1 year or if you feel they are going to do so within the next 30 days, even though you can still register before the 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 normally used by small businesses. In case your business is a partnership firm, a group of companies, or intends to conduct business internationally then you can download and print all vat registration forms but will probably be needed 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 will have 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 the event you intend to conduct your small business on an international level. This will enable 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 get a vat questionnaire within 15 days that will need additional details to be submitted such as your organization address, telephone and fax numbers, banking account numbers, and several other details connected to your small business including a few purchase and sales invoices.
Once your application is eligible you will receive your vat number and you will now have to alter 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 you will discover 3 types of vat rates applicable for all goods and services. The regular vat rate is 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 which will remain the same. There are also certain products or 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 want to register your organization for vat then going online will help save your time plus allow you to securely complete the required process required for vat registration. You should simply log on to the hmrc vat department in case your organization is based in the UK or ask your vat agent to do so on your behalf before using online vat registration to get registered as being a vat dealer without any problem.