If you are 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 and you too should save on effort and time by using all online vat services provided by your vat department.
In the UK vat rules specify that you can make an application for vat registration if your taxable sales rise over the vat threshold limit of £70,000 in the past 1 year or if you feel they will do this over the following 30 days, although you could register even before your sales touch this figure. However, you can at present only complete basic vat online registration by filling and submitting vat form 1 online. This method is normally utilised by small establishments. In case 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 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 will have 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 small business on an international level. This may enable 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 will 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 a lot of other details connected to your small business including a few purchase and sales invoices.
As soon as your application is approved you will receive your vat number and you’ll now need to change your invoicing method to issue vat invoices for all your sales. This vat invoice will need to display your vat no, vat rate, vat amount and also the same must also be displayed on your vat returns which will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom you will discover 3 types of vat rates applicable to all services and goods. 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 services and goods which will remain the same. There’s also certain products or services that are vat exempt. However, the vat rates will vary 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 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 on your behalf before using online vat registration to have registered as being a vat dealer without any problem.