If you are 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 time and effort by using all online vat services provided by your own vat department.
In the UK vat rules specify that you could make an application 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 that they are going to do so over the following 1 month, even though you can still register before your sales touch this figure. However, you can at present only complete basic vat online registration by filling up and submitting vat form 1 online. This method is normally utilised by small businesses. In case your organization 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 probably be required 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 that has adopted vat then you will have to first study all applicable vat rules before you 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 even a customs and excise customs vat agent in the event you intend to conduct your business on an international level. This will 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 need additional details to be submitted including your business address, telephone and fax numbers, banking account numbers, and several other details associated with your business including a few purchase and sales invoices.
As soon as your application is eligible you will receive your vat number and you will now have 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 displayed on your vat returns which 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 raise to 20% from January 4, 2011 onwards. There’s a reduced vat rate of 5% and a zero vat rate on specific goods and services which will stay the same. There are also certain goods and services that 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 on the internet will help save your time plus enable you to securely complete the necessary process needed for vat registration. You ought to 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 have registered as a vat dealer without having problem.