If you are a trader based in the UK or other EU country which has adopted vat as a medium of taxation you then should use online VAT registration for faster and secure vat registering. Most countries have computerised their vat operations and you too should reduce time and effort by utilizing all online vat services offered by your vat department.
In the UK vat rules specify that you can apply for vat registration if 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 this within the next 30 days, even though you could register before your 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 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 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. In case 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 business on an international level. This may allow 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 receive a vat questionnaire within 15 days that will require additional details to be submitted such as your business address, telephone and fax numbers, banking account numbers, and several other details connected to your business together with a few purchase and sales invoices.
Once your application is eligible then you will receive your vat number and you’ll now need 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 also the same will also need to be shown 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 goods and services. The regular vat rates are 17.5% that is set to raise 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 remain 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 concept of charging vat tax remains the same in all vat enabled countries.
If you wish to register your organization for vat then going on the internet may help save time and also allow you to securely complete the required process needed for vat registration. You ought to simply log on to the hmrc vat department in case your business is located 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 any problem.