Starting an organization that needs to import goods or services into the UK can be difficult during these competitive times but understanding the number of eu countries that observe vat can help save money. You will definitely be in a position to track tax systems which are similar to your own while also claiming vat refunds for previously paid vat abroad.
There are many countries from the eu which follow the system of vat. Even though the language employed in the vat invoice might differ along with vat rates, the system followed is virtually the same. This list of countries in the EU which have adopted the system of vat are Estonia, Denmark, Bulgaria, Ireland, Latvia, Poland, Spain, Italy, Luxembourg, Belgium, Hungary, Slovak Republic, Czech Republic, Portugal, Sweden, Finland, Slovenia, Austria, Netherlands, Greece, Germany, France, Romania, Malta, Lithuania, and Cyprus. Some territories in this http://vatvalidation.com list of eu countries have however opted to remain out from the vat gambit. You can visit the hmrc vat or hm revenue and customs website to read about such territories.
One major advantage you have when importing goods from such eu countries is any vat which you may have paid in the particular country may be refunded to you by that country once you file for a vat reclaim. This process can be handled by a professional vat agent that has offices in the UK as well as in other countries from which your imports take place. In addition, if you have attended trade shows in a eu country and also have paid vat for the same then such vat amounts can also be recovered back. This vat refund can surely help shore up your business net profit while suitably lowering your product costs.
If you hire an expert vat, customs duties, and excise duties agent then that agent can also help calculate sales vat rates as well as file your vat returns in the stipulated time period. Vat rates in the UK range from 17.5% for standard vat rates to 5% for reduced vat rates to zero vat rates for specific services and products. There are also specific products and services that are vat exempt. The hmrc website provides the detailed set of such services and products which are put into 14,000 classifications.
To be able to claim a vat refund you will need to preserve and submit all original vat documents together with your vat certificate too. While procedures and language in several countries might pose a problem, a vat agent well versed in various vat systems must be able to recover your hard earned money back to your account. Additionally, there are different time limits within eu countries for submitting a vat reclaim and thus having an in-depth understanding of eu vat and uk vat rules will certainly offer a distinct benefit to you and your business.
If you want to import goods or services to the UK then choosing eu countries that follow vat would offer several distinct advantages. Knowing the listing of eu countries that follow vat will help reduce costs as well as offer simplicity of operation because the system for paying and collecting vat would be the same in most these countries.