If you wish to import services or goods from EU States or countries then you should first get the eu countries list that follow the system of vat or value added tax. This will help you to stay within the same taxation system,
go in for vat refunds plus benefit you if you are planning to re-export something back into those EU countries.
If your trading business is located in the UK then it is extremely important to know about fellow EU countries which follow vat since this will continue uniformity in taxation and simplify your paperwork whenever 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 you’ll be able to go for vat reclaim once you sell the goods in the local market at prevailing vat rates. However, before you begin 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 right vat form to complete the vat registration process, although you will have to submit documentary proof too. As soon as you get the 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 some specific territories within some countries that do not follow vat. Each EU country is assigned a specific code and follows a specific vat number format. Vat invoices are also prepared in each country in their own language. For instance, Poland issues a faktura vat, which is their version of the vat invoice.
If you want to reclaim vat paid in another country then the best way forward should be to hire a vat agent that’s a professional in uk vat in addition to eu vat rules. This will allow you to file your vat returns correctly and in the stipulated time period while also doing the same when claiming vat refunds in the country of origin. Additionally it is important to study various classifications in customs, excise and vat duties as well as find out about vat exempt items so your product costs are reduced in a legal manner. While duty rates could be different in these eu countries, the fact that they all follow vat will certainly reduce paperwork and assist you with your cost calculations.
Most eu countries follow vat and this also factor ought to be noted if you’re going to import services or goods into the UK or perhaps some other vat friendly EU country. The eu countries list mentioned above should help you to identify countries that follow vat and allow you to import products while avoiding the issue of double taxation by allowing you to reclaim vat back.