If you want to import products or services into your own country that follows vat or value added tax system then being aware of europa vat will save money in your business.
You’ll be able to accurately calculate the buying price 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 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 intend to import goods where vat was already paid then you definitely can also make an application 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 have to apply for vat registration in your own country. For instance, in the UK you can get vat registered once your taxable sale during 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 you’ll be able to charge vat rates as prescribed by the department through a vat invoice that mentions your unique vat number.
You can import goods and services 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 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 and 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 need to enroll the services 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 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 into your coffers.
In case you want to deal with other business in other europa countries that follow vat then you can also cross-check the validity of their 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 your vat number remains to be valid. This move can save you lots of hassle and money while also 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 that has embraced vat then you definitely should first check the europa vat list before you start importing services or products from such countries.