If you want to import goods and services to your own country that follows vat or value added tax system then being aware of europa vat will save money for your business. You will be able to accurately calculate the cost of your imported products whilst be able to charge the correct vat rate whenever you sell them in local markets.
Most countries within the EU have shifted over to vat which has helped achieve uniformity in cross-country imports and exports. It has also allowed businesses to go in for vat refunds on imports where vat was already paid in the original country of export. If you too plan 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 the local sales together with the vat rates.
However, before you start issuing vat invoices to your clients, you will have to make an application for vat registration in your own country. For example, in the UK you will get vat registered when your taxable sale during the last Twelve months touches £70,000, which is called vatverification.com the vat threshold. You will have to contact the hmrc vat department and can 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 through a vat invoice that mentions your unique vat number.
You can import services and goods from several 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 continues to be same. All vat friendly countries have a very 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 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 might be a bit complicated to decipher, you need to enroll the services of a professional vat and import agent so your goods and services are put in the appropriate classification as deemed fit by relevant tax authorities. Your agent should also be able to help you in filing regular vat returns and getting 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 nation code along with the vat number before informing you if the vat number is still valid. This move can save you lots of hassle and money while also keeping you safe from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will ensure your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you’re going to begin an enterprise in any EU country that has embraced vat then you definitely should first check the europa vat list before you begin importing services or products from such countries.