If you want to import products or services to your own country that follows vat or value added tax system then knowing about europa vat can save money for your business.
You’ll be able to accurately calculate the buying price of your imported products whilst be able to charge the appropriate vat rate whenever you sell them in local markets.
Most countries within the EU have shifted over to vat and this helps achieve uniformity in cross-country imports and exports. It has also allowed businesses to go in for vat refunds on imports where vat has already been paid in the original country of export. In case you too intend to import goods where vat was already paid then you definitely can also make an application for vat reclaim in the country of origin with supporting documents that show your 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 example, in the UK you will get vat registered when your taxable sale during the last 12 months touches £70,000, which is known as the vat threshold. You will need to contact the hmrc vat department and can even use their vat online services to fill up the vat form to apply for 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 may 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 particular low vat rate between 1-6% and vat exempt items or services where no vat is charged. The rates might differ so might the text 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 services of an expert vat and import agent so that your products or services are placed within the appropriate classification as deemed fit by relevant tax authorities. Your agent must also have the ability to help you in filing regular vat returns and getting vat refunds in the nation of origin in order to return the doubly-charged tax amount back to 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 the vat numbers by utilizing the internet. There are several websites that allow you to input the nation code and the vat number before informing you if the vat number remains valid. This move can save you a lot of hassle and funds whilst protecting you from unscrupulous businesses and individuals.
Conducting business with vat friendly eu countries will guarantee your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you’re going to start a business in a EU country which has embraced vat then you definitely should first look into the europa vat list before you begin importing services or products from such countries.