If you are a trader based in the UK or other EU country that has adopted vat to be a medium of taxation you then should use online VAT registration for faster and secure vat registering. Most countries have computerised their vat operations so you too should reduce time and effort by utilizing all online vat services provided by your vat department.
In the United Kingdom vat rules specify that you could make an application for vat registration in case your taxable sales rise over the vat threshold limit of £70,000 in 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 before your 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 normally utilised by small businesses. In case your organization is a partnership firm, a group of companies, or intends 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 back 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’ll have 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 small 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.
Once you send your vat online registration form to the hmrc department then you will receive 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 small 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 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 must also be shown in your vat returns which 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 for all goods and services. The regular vat rates are 17.5% that is 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 goods and services which will stay the same. There are also certain goods and services which are vat exempt. However, the vat rates will vary in each eu country even though basic reasoning behind charging vat tax continues to be same in all vat enabled countries.
If you want to register your business for vat then going online may help save your time and also allow you to securely complete the required process required for vat registration. You should simply log on to the hmrc vat department if 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 any problem.