If you want to import products or 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 appropriate vat rate when you sell them in local markets.
Most countries in the EU have shifted 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 was already 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 apply for vat reclaim in the country of origin with supporting documents that show the local sales together with the vat rates.
However, before you start issuing vat invoices to your clients, you will have to make an application for vat registration in your own country. For example, in the United Kingdom you can get vat registered once your taxable sale in the last 12 months touches £70,000, which is known as vatverification.com 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 by way of a vat invoice that mentions your unique 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 remains the same. All vat friendly countries have a 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 and so might the language in each vat invoice but the formula for calculating vat remains the same in all these countries.
Since customs, excise and vat rules might be a bit complicated to decipher, you need to enroll the expertise of a professional vat and import agent so that your products or services are placed in the appropriate classification as deemed fit by relevant tax authorities. Your agent should also be able 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 into 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 using the internet. There are many websites that allow you to input the country code and the vat number before informing you if the vat number remains valid. This move can help you save lots of hassle and money whilst protecting you from unscrupulous businesses and individuals.
Conducting business with vat friendly eu countries will guarantee that your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you’re going to start a business in any 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.