If you wish to import goods and services to your own country that follows vat or value added tax system then being aware of europa vat will save money in your business.
You will be able to accurately calculate the cost of your imported products whilst 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 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. In case you too intend to import goods where vat has already been paid then you definitely too can 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 during the last 12 months touches £70,000, which is called the vat threshold. You will have to contact the hmrc vat department and can even use their vat online services to fill up the vat form to apply for 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 may import services and goods from many europa vat countries including Sweden, UK, France, Germany, Greece, Spain, Italy, Poland, and many others. 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 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 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 should enroll the expertise of an expert vat and import agent so your goods and services are placed within 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 country of origin so as to return the doubly-charged tax amount back to your coffers.
In case you want to handle other business in other europa countries that follow vat then you could also cross-check the validity of the 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 the vat number remains to be valid. This move can save you lots of hassle and funds while also protecting you from unscrupulous businesses and individuals.
Conducting business with vat friendly eu countries will ensure that your paperwork proceeds in a seamless manner due to the common platform of vat. If you plan to begin an enterprise in any EU country which has embraced vat then you should first check the europa vat list before you begin importing services or products from such countries.