If you want to import goods or services from EU States or countries then you certainly should first have the eu countries list that follow the system of vat or value added tax. This will help you to stay in the same taxation system,
go in for vat refunds plus be beneficial if you plan to re-export some material back to those EU countries.
In case your trading business is located in the UK then it is extremely important to understand fellow EU countries that also follow vat simply because this will continue uniformity in taxation and simplify your paperwork when you import items from such countries. You’ll obviously need to pay customs duties, excise duties or import vat on your services or goods according to their classification as deemed by the UK revenue and customs department or hmrc vat department.
If you have already paid vat in most of the eu countries that are mentioned in the list then you can go for vat reclaim once you sell goods in the local market at prevailing vat rates. However, before you start selling your goods and charging vat on the very same you will need to become a vat registered trader. The hmrc vat department offers several vat online services and you can simply download the appropriate vat form to finish the vat registration process, although you will need to submit documentary proof too. As soon as you get your unique vat no then you can issue a vat invoice against each sale and charge the related vat rate to your clients in the local market.
The hmrc website features the eu countries list that follows the system of vat. These countries are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, and Sweden. However, there are a few specific territories within some countries that don’t follow vat. Each EU country has been assigned a specific code and follows a specific vat number format. Vat invoices may also be prepared in each country in its own language. For instance, Poland issues a faktura vat, that is their version of the vat invoice.
If you want to reclaim vat paid in a foreign country then the best way forward would be to hire a vat agent that is an expert in uk vat in addition to eu vat rules. This will enable you to file your vat returns correctly and in the stipulated time period whilst doing exactly the same when claiming vat refunds in the nation of origin. It is also important to study various classifications in customs, excise and vat duties and also find out about vat exempt items so that your product costs are reduced in a legal manner. While duty rates could be different within these eu countries, the fact that each of them follow vat will certainly reduce paperwork and assist you with your cost calculations.
Most eu countries follow vat and this also factor should certainly be noted if you’re going to import goods or services into the UK or in any other vat friendly EU country. The eu countries list mentioned above should allow you to identify countries that follow vat and permit you to import products while avoiding the issue of double taxation by permitting you to reclaim vat back.