VAT Registration – Online Application, Procedure, and Number Lookup

What is VAT?

VAT, or Value-added Tax, is an indirect charge on almost all products and services in most parts of the world. It is paid by the end consumer of the product or service and can account for a significant percentage of the amount paid for a product or service. 

VAT is collected by business organizations and other entities registered with the country’s competent authority or region. Any organization, be it a Limited company, Sole trader, Partnerships, or Limited Liability partnership, can be registered through the VAT registration act. 

VAT Registration Act 

VAT registration is very important for an organization to collect VAT from end consumers and pass it on to the regulatory authority. Certain benefits can be extracted from VAT registration, such as simplifying tax compliance, eliminating any potential danger of double taxation, and transparency in external and internal processes. 

The Central Government has made the VAT registration procedure very intuitive and simple for organizations. The documents required for VAT registration are minimal, and therefore, the turnaround time for process completion is less.

Documents required for VAT registration

The following list details the documents linearly needed for VAT registration:

1) Company’s certificate of incorporation

2) Statutory documents

3) Employee and Stakeholder details

4) ID proof of Director of the Company

5) Passport size photograph of the Director of the firm

6) Director’s address proof

7) Permanent Account Number (PAN) card of the company

8) Article of Association (AOA) and Memorandum of Association (MOA) documents

9) Bank account details

10) List of Directors

11) Commodities description

12) Supplier Details (if applicable)

13) Postal address

14) Authorised signatory details

Please note: It is not an exhaustive list, and certain documents might be needed/not needed depending on several factors. Once your documents are ready, you can proceed with the VAT registration application. 

How to apply for VAT registration?

The VAT registration process, for years, has been made simpler and more intuitive for any stakeholder to use; the following outlines the steps through which you can apply for VAT registration.

Step 1: Log in to your respective state’s VAT registration website and click on the “Registration” button present on the home page. For example, if you are looking for VAT Registration in Bangalore, you can check out this website. 

Step 2: Fill in the required information and upload all the documents you had painstakingly collected 

Step 3: Once you register, your company will be allotted a temporary VAT number. Meanwhile, in the backend, the verification process of all information given will kickstart

Step 4: After successful verification, your company will be allocated a permanent VAT number, and voila! Your company is registered for VAT. 

How to check VAT registration status?

The status of VAT registration can be easily checked through its online portal through these easy steps. 

1. Visit the official website for VAT registration of your state.
2. Fill in the required credentials. You can also use your temporary VAT number during the registration application. 
3. The page will show the status of your VAT registration, including the dealer status. 

VAT Registration Payment

VAT registration fees are Rs 500. 

Registration fees are categorized into two major sections.

Based on turnover: 

• For turnover between Rs. 2 lakhs to Rs. 10 lakhs, VAT fees will be Rs. 3,000
• For turnover between Rs. 10 lakhs to 25 lakhs, VAT fees will be Rs. 6,000
• For turnover between Rs. 25 lakhs VAT fees will be Rs. 10,000

Based on the type of business

• If it’s a sole proprietorship firm, the fees will amount to Rs. 1,000
• If it’s a partnership firm, the fees will amount to Rs. 1,000 for each partner
• If it’s a registered company, the fees will amount to Rs. 2,500

Benefits of VAT Registration for business

VAT registration offers several benefits to ventures, and we have compiled a few of them here. 

Legal Protection

Once your firm gets an authorized VAT registration number, it will legalize your MSME registration. It offers more authentication and a greater reputation to the company. It further adds to the credibility of the business products and services and would allow you to experience ease when you apply for a business loan. 

Claim “Set-off”

The enterprise can also benefit from “Set-off once they have got VAT registration number. Set off claim is the difference between the amount of VAT paid to the supplier by the business and the amount of VAT received by the business. Therefore, once your business gets registered, it only has to pay the government and can deduce the VAT from what the customer pays. 

Well established Image

As mentioned before, VAT registration builds the high credibility of the business. It is only mandatory for companies having a turnover of Rs five lakhs or ten lakhs. Thus, you can have an established image and attract more funding options. 

Access your VAT status in an instant

If your business is already VAT registered, you can easily check its VAT status without any hassle. You can enter your registered VAT number and go through all past payments and records without managing loads of paper. It provides a seamless, quick, and hassle-free experience. 

Bottom Line

These are only a few benefits; however, many more can appeal to your micro, small or medium business. While the common misconception is that VAT is only required for companies with big turnovers, there are many instances where it has turned out beneficial for small enterprises. When correctly understood and implemented, VAT can result in savings and an improved business image.

So what are you waiting for? Apply for VAT registration for your business today!