If you wish to import goods and 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 cost of your imported products while also be able to charge the correct vat rate whenever you sell them in local markets.
Most countries within the EU have shifted to vat and this helps 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 plan to import goods where vat has already been paid then you can also apply for vat reclaim in the country of origin with supporting documents that show your local sales along with the vat rates.
However, before you start issuing vat invoices to your clients, you will need to make an application for vat registration in your own country. For instance, in the UK you can get vat registered when your taxable sale in the last 12 months touches £70,000, which is called vatverification.com the vat threshold. You will need to contact the hmrc vat department and may 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 can 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 essential 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 and so might the language in each vat invoice but 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 products or services are put 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 getting vat refunds in the nation of origin so as 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 their vat numbers by utilizing the internet. There are several websites that allow 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 a lot of hassle and funds while also protecting you from unscrupulous businesses and folks.
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 a business in a EU country which has embraced vat then you definitely should first look into the europa vat list before you start importing services or products from such countries.