If you’re a trader based in the UK or any 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 so you too should reduce effort and time by utilizing all online vat services offered by your vat department.
In the United Kingdom vat rules specify that you could make an application for vat registration if your taxable sales rise over the vat threshold limit of Â£70,000 during the past 1 year or if you feel that they are going to do so over the following 30 days, although you can still register before your sales touch this figure. However, you are able to at present only complete basic vat online registration by filling and submitting vat form 1 online. This form is normally vatverification utilised by small establishments. If your organization 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 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 will need to first study all applicable vat rules before you decide to register your business online. In case 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 intend to conduct your business on an international level. This may 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 such as your organization 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 eligible you will receive your vat number and you will now need 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 will also need to be displayed on your vat returns which will need to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 different types of vat rates applicable for all services and goods. The standard vat rate is 17.5% that’s set to increase to 20% from January 4, 2011 onwards. There is a reduced vat rate of 5% and a zero vat rate on specific services and goods that will stay the same. There are also certain products or services that are vat exempt. However, the vat rates are different 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 business for vat then going online will help save your time and also allow you to securely complete the necessary process needed for vat registration. You should simply log on to the hmrc vat department in case your organization is located in the UK or ask your vat agent to do so for you before using online vat registration to have registered as being a vat dealer without having problem.