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 utilizing all online vat services offered by your own vat department.
In the UK vat rules specify that you can apply for vat registration in case your taxable sales rise above the vat threshold limit of Â£70,000 in the past 12 months or if you feel they will do so within the next 1 month, even though you can still register before the sales touch this figure. However, you can at the moment only complete basic vat online registration by filling and submitting vat form 1 online. This form is generally used by small establishments. In case your organization is a partnership firm, a group of companies, or intends to do business internationally then you can download and print all vat registration forms but will be required to fill the form manually before sending it back 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 even a customs and excise customs vat agent in case you plan to conduct your business on an international level. This will allow you to remain safe while following all vat rules in different countries with falling foul of any department.
When you send your vat online registration form to your hmrc department then you will get a vat questionnaire within 15 days that will need additional details to be submitted such as your organization address, telephone and fax numbers, bank 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 then you will receive your vat number and you’ll now need to change 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 in your vat returns that will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the United Kingdom there are 3 types of vat rates applicable to all services and goods. 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 goods and services which will remain the same. There are also certain goods and 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 wish to register your business for vat then going on the internet may help save your time and also enable 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 organization is located in the UK or ask your vat agent to do this for you before using online vat registration to get registered as being a vat dealer without having problem.