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’ll be able to accurately calculate the buying price of your imported products whilst be able to charge the appropriate vat rate whenever 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 was already paid then you definitely too can apply 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 vatverification the vat threshold. You will have to contact the hmrc vat department and may use their vat online services to fill 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 unique vat number.
You may import goods and services from many 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 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 your goods and services are put within the appropriate classification as deemed fit by relevant tax authorities. Your agent should also have the ability to help you in filing regular vat returns and getting vat refunds in the nation of origin so as 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 their vat numbers by utilizing the internet. There are many websites that allow you to input the nation code and the vat number before informing you if your vat number remains valid. This move can save you lots of hassle and funds whilst protecting you from unscrupulous businesses and individuals.
Conducting business with vat friendly eu countries will ensure that your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you plan to start a business in any EU country which has embraced vat then you should first check the europa vat list before you begin importing products or services from such countries.