If you want to import services or goods from EU States or countries then you certainly should first get the eu countries list that follow the system of vat or value added tax. This should help you to remain in the same taxation system,
go in for vat refunds plus be beneficial if you are planning to re-export some material back to those EU countries.
If your trading business is located in the UK then it is extremely important to know about fellow EU countries that also follow vat since this will continue uniformity in taxation and simplify your paperwork whenever you import items from such countries. You’ll of course need to pay customs duties, excise duties or import vat on your goods or services according to their classification as deemed by the UK revenue and customs department or hmrc vat department.
If you have already paid vat in any of the eu countries that are mentioned from the list then you can go in for vat reclaim once you sell the goods in the local market at prevailing vat rates. However, before you begin selling your goods and charging vat on the very 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 appropriate vat form to finish the vat registration process, although you will need to submit documentary proof too. Once you get the unique vat no you may 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 a few specific territories within some countries that don’t follow vat. Each EU country has been assigned a particular code and follows a particular vat number format. Vat invoices may also be prepared in each country in their own language. For example, Poland issues a faktura vat, that is their version of the vat invoice.
If you wish to reclaim vat paid in a foreign country then the simplest way forward should be to hire a vat agent that is a professional in uk vat as well as eu vat rules. This will enable you to file your vat returns correctly and within the stipulated time frame whilst doing the same when claiming vat refunds in the nation of origin. Additionally it is imperative that you study various classifications in customs, excise and vat duties as well as find out about vat exempt items so that your product cost is reduced in a legal manner. While duty rates could be different within these eu countries, the fact that each of them follow vat will surely reduce paperwork and help you with your cost calculations.
Most eu countries follow vat and this also factor should certainly be noted if you’re going to import services or goods into the UK or perhaps some other vat friendly EU country. The eu countries list already mentioned should allow you to identify countries that follow vat and allow you to import products while avoiding the issue of double taxation by allowing you to definitely reclaim vat back.