If you are a trader located 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 using all online vat services provided by your own vat department.
In the United Kingdom 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 that they are going to do this over the following 1 month, although you can still register even before the sales touch this figure. However, you are able to at the moment only complete basic vat online registration by filling up and submitting vat form 1 online. This method is generally used by small establishments. If your organization 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 that has adopted vat then you’ll need to first study all applicable vat rules before you decide to register your organization online. Should you have trouble in deciphering uk vat or eu vat rules then its better if you appoint a vat agent or even a customs and excise customs vat agent in the event you plan to conduct your business on an international level. This may enable 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 require additional details to be submitted including your organization address, telephone and fax numbers, bank account numbers, and several other details associated with your small business together with a few purchase and sales invoices.
Once your application is approved then 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 have to display your vat no, vat rate, vat amount and the same must also be shown in your vat returns which will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK you will discover 3 different types of vat rates applicable to all services and goods. The standard vat rate is 17.5% that is set to increase to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% plus a zero vat rate on specific services and goods that will remain the same. There’s 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 business for vat then going on the internet may help save time and also enable you to securely complete the required process needed for vat registration. You should simply log on to the hmrc vat department if your organization is based in the UK or ask your vat agent to do so on your behalf before using online vat registration to have registered as a vat dealer without having problem.