Starting a business that is going to import services or goods to the UK can be difficult in these competitive times but knowing the number of eu countries which follow vat can help save money. You may easily be in a position to track tax systems that are a lot like your own while also
claiming vat refunds for previously paid vat in other countries.
There are several countries in the eu that also follow the system of vat. Although the language employed in the vat invoice might differ in addition to vat rates, the system followed is virtually the same. The list of countries within the European Union that have adopted the system of vat are Estonia, Denmark, Bulgaria, Ireland, Latvia, Poland, Spain, Italy, Luxembourg, Belgium, Hungary, Slovak Republic, Czech Republic, Portugal, Sweden, Finland, Slovenia, Austria, Netherlands, Greece, Germany, France, Romania, Malta, Lithuania, and Cyprus. Some territories in this particular set of eu countries have however opted to stay out from the vat gambit. You can visit the hmrc vat or hm revenue and customs website to read about such territories.
One major advantage that you have when importing goods from such eu countries is any vat that you might have paid in the particular country can be refunded to your account by that country once you file for a vat reclaim. This procedure can be handled by an expert vat agent who has offices in the UK along with other countries from where your imports come about. Moreover, if you have attended trade events inside a eu country and have paid vat for the very same then such vat amounts may also be recovered back. This vat refund can surely help shore increase business net profit while suitably lowering your product costs.
If you hire a specialist vat, customs duties, and excise duties agent then that agent will also help calculate sales vat rates as well as file your vat returns within the stipulated time period. Vat rates in the United Kingdom range between 17.5% for standard vat rates to 5% for reduced vat rates to zero vat rates for specific products and services. There are also specific products and services that are vat exempt. The hmrc website offers the detailed set of such products and services that are put into 14,000 classifications.
In order to claim a vat refund you will have to preserve and submit all original vat documents including your vat certificate too. While procedures and language in several countries might pose a problem, a vat agent well versed in several vat systems should be able to recover your hard earned cash back into your bank account. There are also different time limits in different eu countries for filing for a vat reclaim and thus having an in-depth knowledge of eu vat and uk vat rules will definitely offer a distinct advantage to both you and your business.
If you want to import goods or services into the UK then opting for eu countries that follow vat would offer several distinct advantages. Knowing the list of eu countries that follow vat can certainly help save money as well as offer simplicity of operation because the system for paying and collecting vat will be the same in most these countries.