If you wish to import services or goods from EU States or countries then you certainly should first have the eu countries list that follow the system of vat or value added tax. This should help you to remain within the same taxation system, go in for vat refunds and also benefit you vatcheck if you plan to re-export something back into those EU countries.
In case your trading business is located in the UK then it is very important to know about 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 services or goods 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 which are mentioned from the list then you can go in for vat reclaim once you sell goods in the local market at prevailing vat rates. However, before you start selling your goods and charging vat on the same you will need to be a vat registered trader. The hmrc vat department offers several vat online services and you could simply download the right vat form to finish the vat registration process, although you will have to submit documentary proof too. Once 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 some specific territories within some countries that do not follow vat. Each EU country is assigned a specific code and follows a particular vat number format. Vat invoices may also be prepared in each country in their own language. For example, Poland issues a faktura vat, that is their version of a vat invoice.
If you wish to reclaim vat paid in another country then your best way forward should be to hire a vat agent that’s a professional in uk vat in addition to eu vat rules. This will allow you to file your vat returns correctly and in the stipulated time frame while also doing the same when claiming vat refunds in the country of origin. Additionally it is imperative that you study various classifications in customs, excise and vat duties as well as learn more about vat exempt items so your product costs are reduced in a legal manner. While duty rates might be different in these eu countries, the fact each of them follow vat will certainly reduce paperwork and help you with your cost calculations.
Most eu countries follow vat and this factor should certainly be noted if you’re going to import services or goods to the UK or in any 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 problem of double taxation by permitting you to definitely reclaim vat back.