If you want to import products or services into 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 buying price of your imported products while also have the ability to charge the appropriate vat rate when you sell them in local markets.
Most countries within the EU have shifted 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. 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 your local sales along with the vat rates.
However, before you begin issuing vat invoices to your clients, you will need to apply for vat registration in your own country. For instance, in the United Kingdom you can get vat registered when your taxable sale in the last Twelve months touches £70,000, which is called vatverification the vat threshold. You will have to contact the hmrc vat department and can use their vat online services to fill 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 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 more. Although customs duties, excise duties and import vat might differ in each eu country, the essential principle of taxes continues to be same. All vat friendly countries have a standard vat rate which is between 15-25%, a particular 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 an expert vat and import agent so your goods and services are placed in the appropriate classification as deemed fit by relevant tax authorities. Your agent should also be able 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 deal with other business in other europa countries that follow vat then you could also cross-check the validity of their vat numbers by using the internet. There are many websites that permit you to input the nation code along with the vat number before informing you if your vat number is still valid. This move can save you lots of hassle and money whilst keeping you safe 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 begin a business in a 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.