If you want 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 will be able to accurately calculate the cost of your imported products while also have the ability to charge the appropriate vat rate whenever you sell them in local markets.
Most countries in the EU have shifted over 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 was already paid then you can also apply for vat reclaim in the country of origin with supporting documents that show your local sales along with the vat rates.
However, before you start issuing vat invoices to your clients, you will need to make an application for vat registration in your own country. For example, in the UK you can get vat registered once your taxable sale in the last Twelve months touches £70,000, which is known as vat verification the vat threshold. You will have to contact the hmrc vat department and may even use their vat online services to fill up the vat form to get vat registration. Once your business has the necessary registration then you can charge vat rates as prescribed by the department through a vat invoice that mentions your unique vat number.
You can import services and goods 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 remains the 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 and so might the text in each vat invoice but 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 need to enroll the expertise of a professional vat and import agent so that your products or services are put 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 in order 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 the vat numbers by utilizing the internet. There are many websites that allow you to input the country code along with the vat number before informing you if the vat number remains valid. This move can help you save lots of hassle and money while also keeping you safe from unscrupulous businesses and individuals.
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’re going to begin a business in any EU country that has embraced vat then you should first check the europa vat list before you begin importing services or products from such countries.