If you want to import goods or services from EU States or countries then you should first get the eu countries list that follow the system of vat or value added tax. This should help you to remain in the same taxation system, go in for vat refunds and also benefit you vatcheck if you plan to re-export something back to those EU countries.
If your trading company is based in the UK then it’s very important to understand fellow EU countries that also follow vat since this will continue uniformity in taxation and simplify your paperwork whenever you import items from such countries. You’ll obviously have to pay customs duties, excise duties or import vat for your goods or services based on their classification as deemed by the UK revenue and customs department or hmrc vat department.
If you have already paid vat in any of the eu countries that are mentioned from the list you’ll be able to go for vat reclaim as soon as you sell the goods in the local market at prevailing vat rates. However, before you start selling your goods and charging vat on the very same you will need to be a vat registered trader. The hmrc vat department offers several vat online services and you can simply download the appropriate vat form to complete the vat registration process, although you will need to submit documentary proof too. As soon as you get your unique vat no you may issue a vat invoice against each sale and charge the related vat rate to the clients in the local market.
The hmrc website features the eu countries list that follows the system of vat. These countries are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, and Sweden. However, there are a few specific territories within some countries that don’t follow vat. Each EU country is assigned a specific code and follows a particular vat number format. Vat invoices are also prepared in each country in its own language. For example, Poland issues a faktura vat, that is their version of the vat invoice.
If you wish to reclaim vat paid in a foreign country then your simplest way forward would be to hire a vat agent that is an expert in uk vat as well as eu vat rules. This will likely enable you to file your vat returns correctly and within the stipulated time frame while also doing the same when claiming vat refunds in the country of origin. It is also imperative that you study various classifications in customs, excise and vat duties and also learn more about vat exempt items so your product costs are reduced in a legal manner. While duty rates could be different within these eu countries, the fact each of them follow vat will surely reduce paperwork and help you with your cost calculations.
Most eu countries follow vat and this also factor ought to be noted if you’re going to import goods or services into the UK or perhaps some other vat friendly EU country. The eu countries list already mentioned should help you to identify countries that follow vat and permit you to definitely import products while avoiding the issue of double taxation by allowing you to definitely reclaim vat back.