Starting an organization that is going to import goods or services into the UK can be difficult during these competitive times but knowing the range of eu countries that observe vat can help reduce costs. You will definitely be in a position to track tax systems which are similar to your while
claiming vat refunds for previously paid vat in other countries.
There are many countries in the eu which follow the system of vat. Even though the language used in the vat invoice might differ along with vat rates, the system followed is virtually exactly the same. This list of countries in the European Union that have adopted the system of vat are Estonia, Denmark, Bulgaria, Ireland, Latvia, Poland, Spain, Italy, Luxembourg, Belgium, Hungary, Slovak Republic, Czech Republic, Portugal, Sweden, Finland, Slovenia, Austria, Netherlands, Greece, Germany, France, Romania, Malta, Lithuania, and Cyprus. Some territories in this list of eu countries have however opted to remain out of the vat gambit. You can go to the hmrc vat or hm revenue and customs website to read about such territories.
One major advantage you have when importing goods from such eu countries is that any vat that you might have paid in a particular country may be refunded to you by that country once you apply for a vat reclaim. This process can be handled by a professional vat agent who has offices in the UK as well as in other countries from where your imports come about. In addition, should you have attended trade events in a eu country and have paid vat for the very same then such vat amounts may also be recovered back. This vat refund can surely help shore increase business bottom line while suitably lowering your product costs.
If you hire a specialist vat, customs duties, and excise duties agent then that agent can also help calculate sales vat rates and also file your vat returns within the stipulated time frame. Vat rates in the United Kingdom range between 17.5% for standard vat rates to 5% for reduced vat rates to zero vat rates for specific services and products. There are also specific products and services which are vat exempt. The hmrc website provides a detailed list of such services and products that are put into 14,000 classifications.
To be able to claim a vat refund you will have to preserve and submit all original vat documents together with your vat certificate too. While procedures and language in several countries might pose a problem, a vat agent well versed in various vat systems should be able to recover your hard earned money back into your account. Additionally, there are different time limits in different eu countries for submitting a vat reclaim and therefore having an in-depth knowledge of eu vat and uk vat rules will definitely provide a distinct advantage to you and your business.
If you want to import services or goods to the UK then choosing eu countries that follow vat would offer several distinct advantages. Having the listing of eu countries that follow vat will help reduce costs as well as offer ease of operation as the system for paying and collecting vat would be the same in most these countries.