If you want to import goods and services into your own country that follows vat or value added tax system then being aware of europa vat can save money in your business.
You will be able to accurately calculate the cost of your imported products whilst have the ability to charge the appropriate vat rate whenever you sell them in local markets.
Most countries within the EU have shifted to vat and this 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. If you too plan to import goods where vat has already been paid then you can also make an application 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 make an application for vat registration in your own country. For example, in the UK you will get vat registered when your taxable sale in the last 12 months touches £70,000, which is known as 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 gets the necessary registration then you can charge vat rates as prescribed by the department by way of a vat invoice that mentions your distinct vat number.
You can import services and goods from several 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 continues to be 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 text in each vat invoice however the formula for calculating vat continues to be same in all these countries.
Since customs, excise and vat rules can be a bit complicated to decipher, you need to 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 must also have the ability to help you in filing regular vat returns and getting vat refunds in the country of origin so as 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 could 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 along with the vat number before informing you if your vat number remains to be valid. This move can help you save a lot of hassle and funds whilst protecting you from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will guarantee your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you plan to begin an enterprise in any EU country which has embraced vat then you definitely should first check the europa vat list before you start importing services or products from such countries.