If you wish to import products or services to your own country that follows vat or value added tax system then knowing about europa vat can save money in your business.
You’ll 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 in the EU have shifted to vat and this helps 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 intend 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 will get vat registered once your taxable sale during the last 12 months touches £70,000, which is known as the vat threshold. You will need to contact the hmrc vat department and can even use their vat online services to fill up the vat form to apply for vat registration. When your business gets 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 many 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 continues to be same. All vat friendly countries have a standard vat rate which 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 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 should enroll the services of an expert vat and import agent so your products or services are placed within the appropriate classification as deemed fit by relevant tax authorities. Your agent should also have the ability to help you in filing regular vat returns and applying for vat refunds in the nation of origin so as to return the doubly-charged tax amount back to your coffers.
In case you want to handle other business in other europa countries that follow vat then you could also cross-check the validity of the vat numbers by utilizing the internet. There are several websites that allow you to input the nation code along with the vat number before informing you if the vat number is still valid. This move can help you save lots of hassle and money while also protecting you from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will ensure that your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you plan to start an enterprise in any EU country that has embraced vat then you definitely should first look into the europa vat list before you start importing services or products from such countries.