If you wish to import products or services into your own country that follows vat or value added tax system then knowing about europa vat can save money for your business. You will be able to accurately calculate the buying price of your imported products while also have the ability to charge the appropriate vat rate when you sell them in local markets.
Most countries in the EU have shifted to vat and this has helped achieve uniformity in cross-country imports and exports vat validation. It’s 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 intend to import goods where vat has already been paid then you can also make an application for vat reclaim in the country of origin with supporting documents that show your local sales along with the vat rates.
However, before you start issuing vat invoices to your clients, you will need to make an application for vat registration in your own country. For instance, in the UK you can get vat registered once your taxable sale during the last Twelve months touches £70,000, which is called the vat threshold. You will need to contact the hmrc vat department and can use their vat online services to fill up the vat form to get vat registration. When your business gets the necessary registration then you can charge vat rates as prescribed by the department through a vat invoice that mentions your distinct vat number.
You can import goods and services 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 remains the same. All vat friendly countries have a very 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 and so might the text 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 should enroll the services of a professional vat and import agent so your products or services are placed within the appropriate classification as deemed fit by relevant tax authorities. Your agent must 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 to your coffers.
In case you want to handle other business in other europa countries that follow vat then you could also cross-check the validity of their vat numbers by using the internet check here. There are many websites that allow you to input the country code along with the vat number before informing you if the vat number is still valid. This move can help you save a lot 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 plan to start an enterprise in any EU country that has embraced vat then you definitely should first check the europa vat list before you start importing products or services from such countries.
