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 will save money for your business.
You’ll be able to accurately calculate the buying price 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 over 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 plan to import goods where vat has already been paid then you too can apply for vat reclaim in the country of origin with supporting documents that show the local sales together with the vat rates.
However, before you begin issuing vat invoices to your clients, you will have to apply for vat registration in your own country. For instance, in the UK you will get vat registered once your taxable sale in the last Twelve months touches £70,000, which is called the vat threshold. You will have to contact the hmrc vat department and may use their vat online services to fill the vat form to get vat registration. When your business has the necessary registration you’ll be able to charge vat rates as prescribed by the department by way of a vat invoice that mentions your unique 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 basic principle of taxes remains the same. All vat friendly countries have a standard vat rate which 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 but the formula for calculating vat continues to be same in all these countries.
Since customs, excise and vat rules can be a bit complicated to decipher, you should enroll the services of a professional vat and import agent so that your products or services are put within the appropriate classification as deemed fit by relevant tax authorities. Your agent should also have the ability 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 into your coffers.
In case you want to deal with other business in other europa countries that follow vat then you could also cross-check the validity of their vat numbers by utilizing the internet. There are several websites that allow you to input the country code and the vat number before informing you if the vat number remains to be valid. This move can help you save a lot of hassle and money 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’re going to start a business in any EU country that has embraced vat then you should first look into the europa vat list before you start importing services or products from such countries.