VAT Registration – How to Apply Online, Process, Number Search


VAT, or value added tax, is a tax imposed by the government on the sale of goods and services to end users. Producers of goods and services charge and pay VAT, but VAT is ultimately levied on consumers who purchase those goods and services. All business organizations and manufacturing entities must be registered under the country’s VAT registration law to pay VAT annually. This is of the utmost importance as VAT registration is required for MSME registration, MSME loans, etc.

What is the significance of VAT registration?

VAT registration, also known as TIN, is a necessary and crucial activity for all traders and businesses involved in the production or sale of goods and services.

VAT is comparable to sales tax. However, it differs from sales tax in that it is only collected once throughout the buying process. VAT registration can be done online and is much more convenient than the previous methods, which is one of the reasons it has become so popular among businesses.

Learn more about VAT and others MSME registration requirements at Ziploan to effectively start your MPME journey.

VAT registration procedures

The VAT registration process is straightforward; however, there may be slight variations between states. In India, the tax credit technique is used to calculate and collect VAT. For various categories of goods and services, the basic rate of value added tax varies from 4% to 12.5%.

The basic steps of the VAT registration process are as follows:

  • The application for VAT registration and the appropriate documentation must be completed and sent to the local VAT office based for VAT registration.
  • Within three days of submitting the application form, the local VAT office will examine the business premises.
  • The applicable professional fee filing fees must be paid when the local VAT office has completed the inspection.
  • The TIN number will be assigned when paying the deposit and the VAT certificate will be provided during the day.

What is the procedure for registering for VAT online?

With revolutionary VAT registration technology, MSME registration, taking MSME loans has become efficient and easy. The steps to register for VAT online in India are as follows:

  • Go to your state’s VAT website and select the registration tab.
  • As a request for your business, fill in the essential information and attach the relevant documents.
  • A temporary VAT number can be assigned to the company.
  • Once the documents are verified and the application for VAT registration is completed, your business will be assigned a permanent VAT registration number.

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Documents required for VAT registration

Here are the main documents that you will need to submit with the VAT registration of your business:

  • Certificate of incorporation (in the case of corporations)
  • In the case of companies, the memorandum of association (MoA) and articles of association (AoA) are used.
  • Details about the company’s employees.
  • Proof of address for the director of the company – Lease / Rental contract
  • PAN In the case of a sole proprietorship, the PAN company card / individual card is required.
  • A copy of the ID of the director of the company is required.
  • Company / Property Rental / Lease Contract.
  • In the case of a general partnership, the general partnership deed is used.
  • Photograph of the director of the company in passport format.

In addition, a company must provide the following documents as part of the VAT registration process:

  • Dealer name
  • Company Name
  • Address
  • Phone number
  • Email id
  • Information about the director / general manager / partners / owner
  • Contact details of authorized signing officer
  • Company card number
  • Date of first activity
  • Nature of the company
  • Product description
  • Bank account details
  • List of directors (in the case of companies)

How can I check the status of my VAT registration?

  • Simply visit the VAT registration page.
  • Please provide your identification information or VAT number if you have one.
  • As a result, you will be informed of your VAT status and your reseller status.

The advantages of VAT registration

Your business will benefit from several advantages of VAT registration. Here are some examples:

  • Legally protected – Applicants will receive a VAT registration number, and if a business has a VAT registration number, it will be authenticated, which will make your MSME registration legal. This gives the business a higher reputation and other business owners will feel more confident in going about their business and getting loans. In short, the organization will be protected by law and will project a professional and trustworthy image.
  • You can take advantage of the compensation – The company can simply resort to offsetting, which is essentially the difference between the VAT paid to the supplier and the VAT paid by the customers. As a result, a product’s VAT only needs to be paid to the government once, and if the business has already paid VAT, it can deduct it from the money received from customers.
  • The company’s image is well established – VAT registration becomes compulsory when the turnover of the company exceeds Rs.5.00 lakhs, according to the legislation, and it provides a clear picture of the organization and helps to define its image as a company established. As a result, the business can grow by attracting other entrepreneurs.
  • VAT refund – Once a business registers for VAT, it can get VAT refunds for taxes paid in European countries if the products and services were acquired there.
  • VAT status – If your business is VAT registered, you can quickly check its VAT status online by entering the business VAT number. The benefit of the business is a smooth experience by going through all of the company’s documents and invoices to determine when VAT has been previously paid.

Conclusion

If you are starting out as a small business, VAT registration can benefit MSME registration, MSME loans, etc. Remember that you will need to keep proper records and complete VAT returns on a regular basis.

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Faq – Online VAT registration

What is VAT and what does it mean?

VAT stands for value added tax, and it was created to replace sales tax. This is a multi-stage tax levy.

Who is required to file a VAT return?

According to the regulations of each respective state, each trader / manufacturer or business involved in the manufacture or sale of items is required to register for VAT if their annual turnover is five lakhs or ten lakhs.

Is it possible to check the progress of your VAT registration online?

Yes, you can check the progress of your VAT registration online by going to the official website and entering your temporary VAT ID / number.

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