If you want to import products or services to your own country that follows vat or value added tax system then being aware of europa vat can 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 within the EU have shifted to vat which helps achieve uniformity in cross-country imports and exports. It has also allowed businesses to go in for vat refunds on imports where vat has already been paid in the original country of export. In case you too plan to import goods where vat was already paid then you definitely too can make an application for vat reclaim in the country of origin with supporting documents that show the local sales together 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 once your taxable sale in the last Twelve months touches £70,000, which is known as 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 by way of a vat invoice that mentions your distinct 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 continues to be same. All vat friendly countries have a very 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 continues to be same in all these countries.
Since customs, excise and vat rules might be a bit complicated to decipher, you should enroll the services of a professional vat and import agent so your products or services are placed within the appropriate classification as deemed fit by relevant tax authorities. Your agent must also have the ability to assist you in filing regular vat returns and getting 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 several websites that allow you to input the country code along with the vat number before informing you if your vat number remains valid. This move can help you save lots of hassle and money whilst protecting you from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will guarantee that your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you’re going to start a business in a EU country that has embraced vat then you definitely should first check the europa vat list before you start importing products or services from such countries.