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 in your business. You will 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 within the EU have shifted to vat and this helps achieve uniformity in cross-country imports and exports. It’s also allowed businesses to go in for vat refunds on imports where vat was already paid in the original country of export. If you too intend 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 together with the vat rates.
However, before you begin issuing vat invoices to your clients, you will have to apply for vat registration in your own country. For instance, in the United Kingdom you can get vat registered once your taxable sale during the last 12 months touches £70,000, which is called vat verification the vat threshold. You will have to contact the hmrc vat department and can even use their vat online services to fill the vat form to apply for vat registration. When 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 can import services and goods from several europa vat countries including Sweden, UK, France, Germany, Greece, Spain, Italy, Poland, and many more. Although customs duties, excise duties and import vat might differ in each eu country, the basic principle of taxes continues to be same. All vat friendly countries have a standard vat rate which 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 language in each vat invoice however the formula for calculating vat continues to be same in all these countries.
Since customs, excise and vat rules might be a bit complicated to decipher, you should enroll the expertise of an expert vat and import agent so that your goods and services are placed 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 in order to return the doubly-charged tax amount back to 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 many websites that allow you to input the nation code along with the vat number before informing you if the vat number remains valid. This move can save you lots of hassle and money while also protecting you from unscrupulous businesses and individuals.
Conducting business with vat friendly eu countries will ensure your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you plan to begin an enterprise in a EU country that has embraced vat then you definitely should first check the europa vat list before you begin importing products or services from such countries.