If you wish to import services or goods from EU States or countries then you should first have the eu countries list that follow the system of vat or value added tax. This should help you to stay in the same taxation system,
go in for vat refunds plus be beneficial if you plan to re-export something back into those EU countries.
In case your trading business is located in the UK then it’s extremely important to understand fellow EU countries that also follow vat since this will continue uniformity in taxation and simplify your paperwork when you import items from such countries. You’ll of course need to pay customs duties, excise duties or import vat for your services or goods based on their classification as deemed by the UK revenue and customs department or hmrc vat department.
For those who have already paid vat in any of the eu countries that are mentioned in the list you’ll be able to go in for vat reclaim as soon as you sell the goods in the local market at prevailing vat rates. However, before you start selling your goods and charging vat on the same you will have to be a vat registered trader. The hmrc vat department offers several vat online services and you could simply download the right vat form to complete the vat registration process, although you will have to submit documentary proof too. Once you get the unique vat no then you can issue a vat invoice against each sale and charge the corresponding vat rate to the 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 has been assigned a specific code and follows a particular vat number format. Vat invoices are also prepared in each country in its own language. For example, Poland issues a faktura vat, which is their version of a vat invoice.
If you wish to reclaim vat paid in a foreign country then the best way forward would be to hire a vat agent that’s a professional in uk vat as well as eu vat rules. This will allow 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 might be different in these eu countries, the fact each of them follow vat will surely reduce paperwork and help you with your cost calculations.
Most eu countries follow vat and this factor ought to be noted if you plan to import goods or services to the UK or in some other vat friendly EU country. The eu countries list already mentioned should allow you to identify countries that follow vat and permit you to import products while avoiding the problem of double taxation by permitting you to reclaim vat back.