If you wish to import products or services to your own country that follows vat or value added tax system then being aware of europa vat can save money in your business. You’ll be able to accurately calculate the cost of your imported products whilst be able to charge the correct vat rate when you sell them in local markets.
Most countries in the EU have shifted over to vat which has helped achieve uniformity in cross-country imports and exports. It has also allowed businesses to go in for vat refunds on imports where vat was already paid in the original country of export. In case you too plan to import goods where vat has already been paid then you can also make an application for vat reclaim in the country of origin with supporting documents that show your local sales together with the vat rates.
However, before you begin issuing vat invoices to your clients, you will need to apply for vat registration in your own country. For instance, in the United Kingdom you can get vat registered once your taxable sale in the last 12 months touches £70,000, which is known as vat verification the vat threshold. You will have to contact the hmrc vat department and may even use their vat online services to fill up the vat form to get vat registration. Once your business has the necessary registration you’ll be able to charge vat rates as prescribed by the department through a vat invoice that mentions your distinct vat number.
You may import services and goods from several europa vat countries including Sweden, UK, France, Germany, Greece, Spain, Italy, Poland, and many others. Although customs duties, excise duties and import vat might differ in each eu country, the basic principle of taxes remains the same. All vat friendly countries have a standard vat rate that is between 15-25%, a particular low vat rate between 1-6% and vat exempt items or services where no vat is charged. The rates might differ so might the text in each vat invoice however the formula for calculating vat continues to be same in all these countries.
Since customs, excise and vat rules can be a bit complicated to decipher, you need to enroll the services of an expert vat and import agent so that your goods and services are put within the appropriate classification as deemed fit by relevant tax authorities. Your agent should also be able to assist you in filing regular vat returns and applying for vat refunds in the nation of origin so as to return the doubly-charged tax amount back into your coffers.
In case you want to handle other business in other europa countries that follow vat then you can also cross-check the validity of the vat numbers by using the internet. There are several websites that allow you to input the country code and the vat number before informing you if your vat number remains to be valid. This move can save you lots of hassle and money while also keeping you safe from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will guarantee that your paperwork proceeds in a seamless manner due to the common platform of vat. If you’re going to begin an enterprise in a EU country that has embraced vat then you should first look into the europa vat list before you begin importing services or products from such countries.