VAT Number: How to Create VAT ID & VAT Registration?

VAT Number

VAT number also known as Value Added tax number is a kind of general consumption tax, which is collected on an incremental basis for value added at every stage of production, purchase or sale.

The tax rate is based on the location wherein such purchase or sale is made. Usually, VAT is raised equivalent to one-fifth of the amount of total tax revenue, and every purchaser or seller existing in the market should be registered with vat.

Who Needs VAT Number?

In India, if the turnover of an entrepreneur is more than 5 lacs (10 lakh in some states) then they should have a VAT number. Also, for business, involved in purchasing goods chargeable to VAT is also recommended to get registered with VAT. If in case VAT is not registered, he/she shall not be able to claim input on the tax. You can also check what is CST Number here!

VAT Number

How to do VAT Registration?

Following steps can be taken to get or create VAT IDnumber. You can also go through the procedure of TIN registration after reading this post.

  • The central tax office should be located within the city, wherein VAT Registration can be done.
  • Take the VAT registration form available at the office.
  • Fill the application form and annex following documents with it;
  1. CST registration certificate
  2. Professional tax registration certificate
  3. ID and address proof of entrepreneurs/partner/director
  4. Four passport sized photographs
  5. PAN card and bank account number of partner/proprietor and also director
  • Complete verification of application is carried out by the local VAT authorities, by inspecting business premises at a time prescribed by them.
  • Pay the VAT registration fees once the inspection is over. The structure of fees has been stated below;
  • The registration fee for VAT is Rs. 500. For proprietor it is Rs 1000, partners Rs 1000 and Private limited Company is Rs 2500.
  • 2. The fee is also based on turnover i.e. For 0 to 2,00,000 it is Rs 2000, From 2,00,000 to 10,00,000 it is Rs 3000, 10,00,000 to 25,00,000 it is Rs 6000 and then above Rs 25,00,000 it is Rs 10,000.
  • Once the payment of fees is made and verifications are carried out, the taxpayer identification number is allowed immediately. The VAT Number Registration certificate is issued the very next day or within a week by way of post.

VAT Registration & VAT ID

Thus upon successful submission of documents and completion of above formalities, applicants shall be able to create VAT ID. If in case individuals are finding it difficult to complete the process, they can even look forward for the assistance of experts and thereby ensure that application is duly filed and VAT ID is created without any delay.

VAT Number Verification

It is now possible for an individual or entrepreneur to verify his VAT number or of any dealer based in any state of India. The VAT verification or know your VAT has been made possible because of the initiative of an empowered committee of state finance ministers and tax information exchange system. Hence with this centralized system, any individual can check his or other dealer details and proceed ahead with the business. The same goes with TIN Verification as well!

Conclusion of VAT Number Registration & Verification

Thus VAT is an essential component of taxation, wherein taxes is levied on entrepreneurs or individuals for every value added transaction made on goods. Hence for those dealing in goods chargeable to VAT shall ensure to get registered and duly maintain VAT input and output.

Once the amount of input and offset is set off, the balance amount should be paid adequately to the , regulatory authority under a specified mentioned VAT no. This is not all, the threshold limit for registration and thereby verification of numbers has also been made possible with the formation of web portals.

5 thoughts on “VAT Number: How to Create VAT ID & VAT Registration?

  1. Finally, I got my VAT number and I can now do my business without any troubles. Thank you for guiding me.

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