If you wish to import goods and services into your own country that follows vat or value added tax system then knowing about europa vat will save money for your business. You’ll be able to accurately calculate the buying price 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 to vat and this helps 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 too can make an application for vat reclaim in the country of origin with supporting documents that show your local sales along with the vat rates.
However, before you start issuing vat invoices to your clients, you will need to apply for vat registration in your own country. For instance, in the UK you will get vat registered once your taxable sale during the last Twelve months touches £70,000, which is known as vatverification.com the vat threshold. You will have to contact the hmrc vat department and may even use their vat online services to fill the vat form to get vat registration. Once your business has the necessary registration then you can charge vat rates as prescribed by the department through a vat invoice that mentions your distinct vat number.
You may import goods and services 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 very standard vat rate that is between 15-25%, a special low vat rate between 1-6% and vat exempt items or services where no vat is charged. The rates might differ and so might the language in each vat invoice but the formula for calculating vat remains the same in all these countries.
Since customs, excise and vat rules can be a bit complicated to decipher, you should enroll the expertise of an expert vat and import agent so that your products or services are placed in the appropriate classification as deemed fit by relevant tax authorities. Your agent must also have the ability 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 could also cross-check the validity of their vat numbers by using the internet. There are several websites that allow you to input the nation code along with the vat number before informing you if your vat number remains valid. This move can help you save lots of hassle and funds whilst keeping you safe from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will ensure that your paperwork proceeds in a seamless manner due to the common platform of vat. If you plan 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 products or services from such countries.