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 could apply for vat registration in case your taxable sales rise over the vat threshold limit of £70,000 in the past 12 months or if you feel they will do so within the next 30 days, even though you could register 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 generally utilised by small establishments. If your business is a partnership firm, a group of companies, or plans to conduct business internationally then you could 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 are planning to go in for online vat registration in another eu country that has adopted vat then you’ll need to first study all applicable vat rules before you 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 small business on an international level. This will enable 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 the hmrc department then you will get a vat questionnaire within 15 days that will need additional details to be submitted including your business address, telephone and fax numbers, bank account numbers, and several other details associated with your business including a few purchase and sales invoices.
Once your application is eligible you will receive your vat number and you will now have to alter your invoicing method to issue vat invoices for all your sales. This vat invoice will have to display your vat no, vat rate, vat amount and the same must also be displayed on your vat returns that will have to be submitted to the hmrc vat department at regular intervals.
Currently, in the UK there are 3 different types of vat rates applicable to all goods and services. The standard 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 products or services which are vat exempt. However, the vat rates will vary in each eu country although the basic concept of 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 enable you to securely complete the necessary process required for vat registration. You should simply log on to the hmrc vat department in case your business is located 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 having problem.