If you wish to import goods and services to 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 buying price of your imported products whilst have the ability to charge the correct vat rate when you sell them in local markets.
Most countries within the EU have shifted over to vat which has helped achieve uniformity in cross-country imports and exports. It’s also allowed businesses to go in for vat refunds on imports where vat has already been paid in the original country of export. In case you too plan to import goods where vat has already been paid then you definitely can also make an application for vat reclaim in the country of origin with supporting documents that show the local sales along with the vat rates.
However, before you begin issuing vat invoices to your clients, you will need to make an application for vat registration in your own country. For instance, in the United Kingdom you can get vat registered when your taxable sale in 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 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 goods and services 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 remains the same. All vat friendly countries have a standard vat rate that 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 remains the same in all these countries.
Since customs, excise and vat rules can be a bit complicated to decipher, you need to enroll the services of a professional vat and import agent so your products or services are put in the appropriate classification as deemed fit by relevant tax authorities. Your agent must also be able to assist you in filing regular vat returns and applying for vat refunds in the country of origin in order to return the doubly-charged tax amount back to your coffers.
In case you want to deal with other business in other europa countries that follow vat then you can also cross-check the validity of the vat numbers by utilizing the internet. There are many websites that permit you to input the nation code along with the vat number before informing you if the vat number remains to be valid. This move can help you save a lot of hassle and money while also protecting you from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will guarantee your paperwork proceeds in a seamless manner due to the common platform of vat. If you’re going to begin a business in a 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.